Analysts from UOB report that the EUR/USD pair remained largely unchanged around 1.1620, with a slight increase in upward momentum observed. Intraday, there is potential for the euro to test 1.1640, but any further advance is unlikely to challenge the major resistance at 1.1670. Over the next one to three weeks, the upside bias persists, with expectations that EUR/USD will trade within a narrower 1.1585–1.1670 range. The analysts emphasize that while the bias has shifted to the upside following a recent surge, the momentum is not strong enough to break out of this defined range [1].
For the British Pound, Scotiabank strategists note that GBP/USD is slightly softer but remains supported by expectations of further Bank of England (BoE) tightening into the end of the year. Markets are currently pricing in 16 basis points of tightening for the BoE's November 5th meeting and just over 30 basis points for December 17th. Despite a bullish medium-term trend characterized by higher lows and highs since late June, the pair is expected to remain range-bound between 1.3500 and 1.3600 in the near term. The strategists also highlight that fiscal risks tied to the upcoming Autumn Statement in late October could influence sentiment, though political developments have been limited so far [2].
Both reports underscore that while there is a supportive policy backdrop for the euro and pound, neither currency is expected to break out of their respective trading ranges in the immediate future. The euro's upward momentum is described as gentle, and the pound's outlook is buoyed by anticipated BoE tightening, but both face resistance levels that are unlikely to be decisively breached in the short term [1][2].
CONCLUSION
Both the euro and the British pound exhibit mild upward biases against the US dollar, supported by central bank policy expectations. However, analysts from both UOB and Scotiabank expect these currencies to remain confined within well-defined trading ranges in the near term. Market participants are likely to remain cautious, awaiting further data and policy developments.