The Euro (EUR) is likely to consolidate further, expected to be in a range of 1.0270/1.0330. In the longer run, EUR has entered a range trading phase; it is likely to trade between 1.0220 and 1.0400 for the time being, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is likely to consolidate further

24-HOUR VIEW: "EUR briefly rose to 1.0354 two days ago and then pulled back. Yesterday, we indicated that 'the brief advance did not result in any increase in momentum.' We held the view that EUR 'is likely to consolidate in a 1.0255/1.0345 range.' Our view of consolidation was not wrong, even though EUR traded in a narrower range than expected (1.0260/1.0314), closing largely unchanged (1.0298, +0.09%). The price movements still appear to be part of a consolidation phase. Today, we expect EUR to trade in a 1.0270/1.0330 range."

1-3 WEEKS VIEW: "Our latest narrative was from Wednesday (15 Jan, spot at 1.0300), wherein EUR 'has likely entered a range trading phase, and it is likely to trade between 1.0220 and 1.0400 for the time being.' There is no change in our view."