USD/CNH faces extra rangebound between 7.0700/7.1400 – UOB

FX Strategists at UOB Group believe USD/CNH will extend the 7.0700/7.1400 range in the next weeks.

Key Quotes

24-hour view: “USD soared to a high of 7.1296 before dropping back quickly to end the day unchanged at 7.1111. The rapid but short-lived swings have resulted in a mixed outlook. From here, USD could trade within a relatively wide range of 7.1050/7.1300.”

Next 1-3 weeks: “There is not much to add as USD closed around the same level for the past several days. We continue to hold the same view from Tuesday (12 May, spot at 7.1100) wherein USD is likely to trade sideways and within a broad 7.0700/7.1400 for a period.”