FX168 Financial News (Hong Kong), USD Index Thursday's sharp fall, rather than the US currency, took the opportunity to rebound, and the gold price once soared by $20. On Friday, the market will usher in the US non farm employment report, and the financial market will start again. UOB released its latest forecast of foreign exchange trend within the day.
euro /USD: neutral, sluggish, expected to reach the top of the range 1.1330-1.1490
Analysts from UOB said that due to the sharp decline of the dollar index, the euro closed at 1.14, which greatly reduced the downside risk of the exchange rate. An effective rise above the 1.14 threshold will mean a significant reduction in downside risk. Judging from the current trend, 1.1299 is expected to be the bottom in the near future. It is expected that the exchange rate is unlikely to fall below this level in the coming weeks. The euro is expected to further explore the top of the 1.1330-1.1490 range, but this also indicates the beginning of the shock trend.
pound /USD: neutral, with room to further rise to 1.31
Analysts from UOB pointed out that the pound rose more than 200 points on Thursday. On the one hand, due to the decline of the dollar index, on the other hand, the Bank of England announced the interest rate resolution to maintain stability, but the tone was hawkish, and the UK and the EU reached an agreement on the financial sector. All these three factors combined, the pound rose sharply. The bank pointed out that the bearish sentiment of sterling was turning around, but Thursday's surge in sterling was not the beginning of a bull market. It is expected that sterling will further rebound to 1.31 level, however, considering that sterling is overbought, there may be limited room for growth. In the downward direction, the 1.2840 level will provide strong support for the pound.
AUD /USD: neutral, expected to test key resistance near 0.7260
Analysts from UOB said that the Aussie dollar continued to fluctuate upward, breaking the 0.72 threshold in intraday basis and approaching the key resistance level of 0.7260. This level is the downward trend line resistance level since the middle of August, and effectively rising above this level indicates that 0.7021 is expected to become the long-term bottom. On the downside, the exchange rate will be supported by the level of 0.7110.
NZD/USD: neutral, expected to reach a September high of 0.67
Analysts from UOB said that the exchange rate rebounded strongly and hit the level of 0.6687. Although the bank still maintained a neutral view, the New Zealand dollar is expected to test the resistance of the September high of 0.67. Only when it effectively fell below 0.6565 can it be considered that the upward pressure has slowed down.
USD/JPY: neutral, the exchange rate falls into range fluctuation
Analysts of UOB said that the exchange rate had touched 113.38 before, but then continued to fall. If it effectively breaks through the 112.60 level, the upward pressure on the exchange rate will be further eased. Judging from the current trend, the exchange rate is in a volatile trend, and is expected to trade in the range of 112-113.50 in the next few weeks.
Editor in charge: Guo Jian
