EUR/USD now faces some consolidation within 1.0530-1.0700 – UOB

In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, EUR/USD is expected to navigate within the 1.0530-1.0700 range in the next few weeks.

Key Quotes

24-hour view: “Our expectations for EUR to advance further was incorrect it dropped to a low of 1.0574. While there is scope for EUR to weaken further, any decline is likely part of a lower trading range of 1.0565/1.0655. To look at it another way, a sustained drop below 1.0565 is unlikely.”

Next 1-3 weeks: “We indicated yesterday (02 Mar, spot at 1.0665) that EUR rebound further but a sustained rise above 1.0750 is not high. We did not expect the rapid manner in which EUR gave up most of its gains from the previous day. Instead of rebounding further, EUR is likely to consolidate and trade between 1.0530 and 1.0700 for now.”