EUR/USD Range-Bound as UOB Flags Capped Upside

The EUR/USD pair is expected to enter a range-bound phase, according to United Overseas Bank's foreign exchange strategists. The assessment points to a pause in the euro's upward momentum due to diverging economic signals from the Eurozone and the United States.

UOB's strategists highlighted that the recent high near 1.09 has capped further upside for the euro, while support is seen around the 1.08 level. This suggests a trading range that could persist in the coming sessions, barring any major catalyst.

The US dollar remains supported by resilient economic data and a relatively hawkish Federal Reserve stance, which has limited the euro's upside potential. The European Central Bank's policy tightening expectations have also been tempered by softer economic indicators in the Eurozone.