UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest further upside in EUR/USD now appears diminished.

Key Quotes

24-hour view: “Last Friday, we held the view that EUR ‘is likely to consolidate and trade between 0.9925 and 1.0050’. While EUR consolidated as expected, it traded within a narrower range than expected (0.9925/0.9997) before closing largely unchanged at 0.9963 (+0.01%). The price actions still appear to be part of a consolidation and we expect EUR to trade sideways between 0.9920 and 1.0020 today.”

Next 1-3 weeks: “Our update from last Friday (28 Oct, spot at 0.9970) still stands. As highlighted, the sharp pullback last Thursday has resulted in a quick loss in momentum and the chance of further EUR strength has diminished. However, only a break of 0.9880 (no change in ‘strong support’ level) would indicate that the EUR strength that started early last week has come to an end.”