The US Dollar (USD) is likely to trade sideways between 7.1150 and 7.1350. In the longer run, downward momentum has increased sharply, suggesting there is potential for USD to decline to 7.0636, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

Potential to decline towards 7.0636

24-HOUR VIEW: “Yesterday, we held the view that USD ‘could drop further to 7.0900 before stabilisation can be expected.’ However, USD fell less than expected, rebounding from 7.1069 to 7.1251. USD closed at 7.1239 ( 0.11%). Downward pressure appears to have faded. Today, USD is likely to trade sideways, probably between 7.1150 and 7.1350.”