FX Strategists at UOB Group noted EUR/USD is still seen within the 1.0730/1.0910 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that EUR ‘could edge below 1.0800 but a break of last week’s 1.0765 low would come as a surprise’. Our expectation was not wrong as EUR dropped to 1.0773 before rebounding. Downward pressure has eased but it is too soon to expect a sustained recovery for now. EUR is more likely to consolidate and trade between 1.0780 and 1.0840.”

Next 1-3 week: “We have held the same view for more than a week when we indicated last Wednesday (06 May, spot at 1.0835) that the outlook for EUR is mixed and it is likely to trade in an erratic manner between 1.0730 and 1.0950. While there is no change in our view, the daily ranges over the past several days have been relatively narrow and from here, a 1.0730/1.0910 range could be enough to contain the movement in EUR for a while more.”