Slight increase in downward momentum is likely to lead to a lower range of 7.1170/7.1280. 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: "Yesterday, we expected USD to 'trade in a range of 7.1220/7.1350'. USD subsequently traded between 7.1205 and 7.1295. There has been a slight increase in downward momentum, but this is likely to lead to a lower range of 7.1170/7.1280 rather than a sustained decline."

1-3 WEEKS VIEW: "We have held a mildly positive USD view since early this week. Two days ago (05 Nov, spot at 7.1340), we highlighted that 'there is scope for USD to test 7.1450'. USD did not test 7.1450. Instead, it eased to a low of 7.1205 yesterday. Although our ‘strong support’ level has not been breached yet, the mild upward momentum has largely faded. USD has likely entered a range-trading phase, and for the time being, we expect it to trade between 7.1120 and 7.1330."