USD/CNH: Likely to trade sideways between 7.1640 and 7.1840 – UOB Group

US Dollar (USD) is likely to trade sideways between 7.1640 and 7.1840 against Chinese Yuan (CNH). In the longer run, downward momentum has not increased significantly, but bias for USD is on the downside toward 7.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum has not increased significantly

24-HOUR VIEW: "Following the sharp drop in USD last Friday, we indicated yesterday, Monday, that 'the decline appears to be overdone, but there is a chance for USD to test 7.1650 before stabilisation is likely.' We added, 'the major support at 7.1500 is unlikely to come into view.' USD then dropped to 7.1626 and then quickly rebounded to close largely unchanged (7.1783, +0.09%). Downward pressure appears to have eased, and USD is likely to trade sideways today, probably between 7.1640 and 7.1840."

1-3 WEEKS VIEW: "Yesterday (26 May, spot at 7.1770), we indicated that 'while downward momentum has not increased significantly, as long as 7.2070 (‘strong resistance’ level) is not breached, the bias for USD is on the downside toward 7.1500.' Our update still stands."

May 27, 2025

Europe's dream of a global reserve currency – Commerzbank

Yesterday ECB President Christine Lagarde gave a speech in Berlin. It was about how the euro could possibly replace the dollar as the dominant global currency in the future. The speech is worth reading, Commerzbank's Head of FX and Commodity Research Ulrich Leuchtmann notes.

Why this rise in US yields is so remarkable – Commerzbank

At the beginning of the year, yields were higher, and in the fall of 2023 they were even significantly higher. And at that time, no one questioned the stability of US public finances. US government bond yields and the value of the US dollar have been closely correlated to date.