FX Strategists at UOB Group remain neutral on EUR/USD and see the pair navigating within the 1.0725/1.0940 band for the time being.
24-hour view: “The sudden but short-lived surge in EUR and the subsequent rapid pull-back from 1.0888 came as a surprise. The volatile price action has resulted in a mixed outlook. For today, EUR could continue to trade in a choppy manner between 1.0790 and 1.0870.”
Next 1-3 weeks: “We have held the same view since 16 Apr (spot at 1.0890) wherein ‘the outlook is mixed’ and EUR could ‘continue to trade in an undecided manner within a broad 1.0750/1.1000 range for a period’. When EUR moved towards the bottom of our expected range at 1.0750, we indicated last Friday (24 Apr, spot at 1.0780) that only ‘a NY closing below 1.0720 would suggest EUR could weaken further to 1.0635’. EUR subsequently dipped to 1.0725 before staging a robust rebound. Downward pressure has eased and the outlook for EUR remains mixed for now. From here, EUR could continue to trade in an undecided manner and a 1.0725/1.0940 range is likely wide enough to contain the movement in EUR for a while more.”