The US Dollar (USD) is expected to move between 7.1300 and 7.1450 in the short term. For a longer period, analysts from UOB Group predict it will range from 7.1200 to 7.1550. In the last 24 hours, the USD fluctuated between 7.1361 and 7.1495, closing at 7.1403, which is a small increase of +0.04%. Today, it is likely to trade between 7.1300 and 7.1450.

Future Analysis

In the next one to three weeks, analysts believe the USD will stay within a wider range. Their latest report suggests it will trade between 7.1200 and 7.1550. This information comes from the FXStreet Insights Team, which consists of journalists tracking market trends. Their insights combine notes from commercial sources and expert analysis. Given yesterday’s minor price changes, we expect the USD/CNH will keep trading sideways, probably staying between 7.1300 and 7.1450. This trend is likely to broaden out to 7.1200 to 7.1550 over the next few weeks. Such a steady environment makes a major breakout less likely to be profitable. Due to this low-volatility outlook, traders may want to use strategies that benefit from time decay and stability. Selling options premiums—like through short strangles or iron condors—can be effective. The aim is to earn income while the currency pair remains within the anticipated limits.

Economic Context

This prediction is backed by stable recent economic data. The US inflation report for September 2025 showed a 2.5% rise, meeting expectations and reducing the chances of unexpected interest rate changes from the Federal Reserve. This lowers potential volatility for the dollar in the near future. On the flip side, China’s Q3 2025 GDP growth came in at a steady 4.8%, with industrial production aligning with forecasts. The People’s Bank of China has been consistent in setting the daily yuan fixing rate to minimize sharp fluctuations, promoting market stability. This coordinated effort indicates a tendency towards a stable currency environment. We observed similar low-volatility periods in late 2023 and much of 2024. During those times, the central bank’s strong guidance kept the pair within a narrow channel for months. Selling volatility during that period was quite successful. Therefore, traders might consider setting up an iron condor by selling call options above 7.1550 and put options below 7.1200. This strategy creates a low-risk position that profits as long as USD/CNH remains between the defined strikes when it expires in the coming weeks. The main source of profit will come from time passing, known as theta decay. Create your live VT Markets account and start trading now.

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