The US Dollar (USD) is projected to stabilize within a defined trading band of 142.20 to 144.00. According to FX analysts Quek Ser Leang and Peter Chia at UOB Group, the US Dollar is anticipated to remain in a consolidation phase over the longer term, fluctuating between 142.20 and 146.70 for the foreseeable future. This assessment reflects a period of recalibration following recent market movements and evolving economic indicators.
USD/JPY has likely entered a consolidation phase
24-HOUR VIEW: “Yesterday’s forecast anticipated a trading range of 143.40 to 144.85 for the USD. Contrary to expectations, the USD experienced a sharp decline, closing at 142.41, representing a 0.90% decrease. Subsequently, the USD demonstrated a robust recovery following the New York market close. This rebound, in conjunction with decelerating momentum and oversold market conditions, indicates a likely period of consolidation for the USD. The projected trading range for today is 142.20 to 144.00.” This suggests traders should anticipate less volatile movement in the short term as the currency pair finds a new equilibrium. Market participants are closely watching key economic data releases that could influence the pair’s trajectory.
1-3 WEEKS VIEW: “The following excerpts are derived from our previous analysis on May 6th, when the USD was trading at 144.00: ‘The initial recovery from the late April low of 139.86 exhibited considerable strength; however, upward momentum has since diminished. It is probable that the USD has entered a consolidation phase, with an expected trading range between 142.20 and 146.70 for the time being.’ This assessment remains valid. Looking forward, a decisive breach and sustained hold below the 142.20 level could potentially precipitate a more substantial retracement.” This longer-term view suggests that while consolidation is expected, the downside risks remain significant. Investors should monitor key support levels and be prepared for potential shifts in market sentiment driven by macroeconomic developments and central bank policies. The analysts also noted that any significant deviation from expected inflation figures could trigger a re-evaluation of the USD’s outlook.
