There has been no increase in either downward or upward momentum; EUR is likely to trade in a 1.1130/1.1230 range vs US Dollar (USD). In the longer run, EUR is likely to consolidate between 1.1100 and 1.1290 for the time being, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

EUR is likely to consolidate in the near term

24-HOUR VIEW: "EUR rebounded strongly to a high of 1.1194 two days ago. Yesterday, when EUR was at 1.1185, we indicated that it 'could rebound further, but any advance is likely part of a higher range of 1.1125/1.1225.' While EUR rose more than expected to 1.1265, it retreated to close modestly lower by 0.09% at 1.1174. There has been no increase in either upward or downward momentum. To put it another way, EUR is likely to trade in a range today, probably between 1.1130 and 1.1230."

1-3 WEEKS VIEW: "We turned negative on EUR late last week. After EUR fell to 1.1064, in our latest narrative from two days ago (13 May, spot at 1.1095), we highlighted that EUR 'remains under pressure, but it remains to be seen if the current corrective pullback can reach 1.0945.' We added, 'a break above 1.1225 (‘strong resistance’ level) would mean that EUR has entered a consolidation phase. Yesterday, EUR broke above 1.1225, reaching a high of 1.1265. As indicated, EUR has likely entered a consolidation phase. For the time being, we expect it to trade between 1.1100 and 1.1290."