Softer underlying tone is likely to lead to a lower range of 7.1155/7.1260 rather than a continued decline. In the longer run, USD has likely entered a range-trading phase between 7.1120 and 7.1330, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD has likely entered a range-trading phase

24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1170 and 7.1290' yesterday. USD subsequently traded in a narrower range than expected (7.1175/7.1264), closing largely unchanged at 7.1221 (+0.01%). Despite the quiet price action, the underlying tone has softened somewhat. However, this is likely to lead to a lower trading range of 7.1155/7.1260 rather than a continued decline."

1-3 WEEKS VIEW: "Our most recent narrative was from last Friday (07 Nov, spot at 7.1230), in which we highlighted that USD 'has likely entered a range trading phase, and for the time being, we expect it to trade between 7.1120 and 7.1330'. We continue to hold the same view."