EUR/USD keeps the mixed outlook unchanged – UOB

FX Strategists at UOB Group reiterated the mixed outlook around EUR/USD remains well in place for the time being.

Key Quotes

24-hour view: “We expected EUR to ‘drift lower’ yesterday but it rebounded strongly after dropping briefly to a low of 1.0783 (overnight high of 1.0884). Despite the rapid bounce, upward momentum has not improved by much and the risk of a sustained advance is not high. Overall, EUR could edge higher from here but any advance is viewed as part of a 1.0800/1.0900 range.”

Next 1-3 weeks: “We have held the same view since last Wednesday (06 May, spot at 1.0835) wherein the outlook for EUR is mixed. We indicated that EUR could trade in an erratic manner and within a broad range of 1.0730/1.0950 for a period. The relatively choppy price actions since then reinforce our view. In other words, we continue to expect EUR to trade between 1.0730 and 1.0950 for now.”