The US Dollar is likely to remain steady against the Chinese Yuan Renminbi (USD/CNH) in the short term. FX analysts from UOB Group predict that USD/CNH will trade between 7.1330 and 7.1460. Looking ahead, UOB Group expects USD/CNH to stay within a range of 7.1200 to 7.1550. Recently, the trading occurred between 7.1320 and 7.1426, which is tighter than originally anticipated.

Price Action and Market Expectations

This price action reveals no new trends, reinforcing expectations of steady trading. The outlook for the next 1-3 weeks suggests the currency pair will likely stay between 7.1200 and 7.1550, based on recent insights. The FXStreet Insights Team gathers market observations from experts, paired with insights from both commercial and internal analysts. Currently, the expectation is for USD/CNH to remain stable, likely trading between 7.1200 and 7.1550 over the next few weeks. This indicates a period of low volatility, which is ideal for strategies that benefit from time decay. Therefore, we should consider options strategies that gain when the currency pair does not move significantly in either direction. This stability is supported by recent economic data, which has eased market concerns. Last week, China’s third-quarter GDP for 2025 was reported at a steady 4.7%, alleviating worries about industrial output. Additionally, the People’s Bank of China is keeping its daily yuan reference rate close to expectations, signaling an intention to stabilize currency fluctuations for the time being.

US Economic Indicators and Market Strategy

In the US, the September 2025 inflation report showed core CPI at 2.8%, suggesting that the Federal Reserve will likely keep interest rates unchanged during its November meeting. Compared to the sharp movements in 2023 and 2024 during the peak of the Fed’s rate hikes, the current situation is much quieter. This absence of strong direction from either central bank supports a range-bound market. Given this outlook, selling options premium seems to be the most sensible strategy. We could use strategies like iron condors or short strangles, with strike prices set outside the expected 7.1200 to 7.1550 range. The goal is to collect the premium as the options lose value each day that USD/CNH remains within this range. The main risk is a sudden breakout caused by unexpected geopolitical news or a shift in central bank guidance. We should closely monitor the key levels of 7.1200 and 7.1550. A clear break outside this range would indicate the end of the low-volatility period and require a swift change in strategy. Create your live VT Markets account and start trading now.

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