The current price action appears to be part of a 147.65/148.85 range trading phase. In the longer run, USD strength has paused for now; it is expected to trade in a range of 146.90/149.20, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Current price action appears to be part of a 147.65/148.85

24-HOUR VIEW: "Following the volatile price action two days ago, we indicated yesterday that 'the sharp fluctuations have resulted in a mixed outlook.' We were of the view that USD 'could continue to fluctuate, likely between 147.50 and 148.80.' USD subsequently traded in a higher range than expected (147.71/149.09) before closing at 148.60 (+0.50%). The price action appears to be part of a range trading phase. Today, we expect USD to trade between 147.65 and 148.85."

1-3 WEEKS VIEW: "After holding a positive USD stance for more than a week, we revised our view to neutral yesterday (16 Jul, spot at 148.30). We stated that 'USD strength has paused for now,' and we expected it to 'trade in a range of 146.90/149.20.' Our view remains unchanged."