USD/CNH Range-bound as UOB Analysts Predict Narrow Trading Band

Analysts at United Overseas Bank (UOB) expect the Chinese Yuan to trade within defined ranges against the US Dollar, despite increased downward momentum. In a recent analysis, UOB's Quek Ser Leang and Lee Sue Ann pointed out that the rapid rise in the USD against CNH was overdone.

According to their 24-hour view, the pair is likely to trade between 6.7120 and 6.7250. The analysts noted that the sharp increase in volatility on Friday was not anticipated, and they were unable to derive much from the price action.

The 1-3 week view of UOB's analysts suggests that while downward momentum has increased, it is insufficient to indicate a continued decline. They expect the pair to stay contained within a 6.7050/6.7300 range.