Neutral
USD/CNH consolidates near 6.7258 as UOB forecasts range-bound trading ahead.
Over the past 24 hours, USD/CNH has exhibited a consolidation pattern, trading around 6.7258. United Overseas Bank (UOB) analysts anticipate this trend to continue, expecting the pair to remain within a narrow range in the near term.
Key points
- UOB analysts note that USD/CNH's upward momentum has temporarily faded, with the market expected to shift into range-bound consolidation.
- The People's Bank of China (PBoC) has been setting daily fixings firmer than market expectations, signaling discomfort with rapid depreciation but tolerance for gradual appreciation.
- Recent U.S. sanctions on Iran and a generally weaker dollar have contributed to the RMB's relative stability, with some foreign bank traders believing in its potential for steady appreciation.
Sources
AI-generated from public news sources. Not financial advice.
