The US Dollar (USD) is currently trading between 7.1800 and 7.2000. Analysts from UOB Group predict it may settle in a wider range of 7.1600 to 7.2240 over a longer period. In the past 24 hours, the USD was anticipated to dip below 7.1750 but only fell to 7.1776. It then rose to 7.1950 before closing at 7.1890, showing a slight increase of 0.06%. Currently, the dollar seems to be in a consolidation phase and is likely to stay within this range.

Expected Range for USD

Over the next week or two, the USD is expected to hold within the wider range mentioned earlier. This supports previous analyses that foresee range trading. This information looks ahead and carries possible risks and uncertainties. It’s for informational purposes only and should not be taken as trading advice. Always do thorough research before investing, as trading in open markets can be risky. Given the current market trends, the US Dollar seems stable within a narrow band. Recent price movements indicate a balance between buyers and sellers, with a broader range of 7.1600 to 7.2240 likely over the next few weeks. This period of consolidation follows a volatile second quarter, suggesting that stability is now preferred. This sideways movement is in response to recent economic reports. The US job report for July, released last week, showed an impressive gain of 215,000 jobs, but CPI inflation dipped slightly to 2.8%. This mixed data from early August 2025 leaves the Federal Reserve with no strong reason to alter its policies, keeping the dollar steady for now.

Market Strategies and Considerations

For traders, this suggests a decrease in implied volatility in the near future. We saw a similar trend in the third quarter of 2024 when volatility dropped before a key policy announcement. Lower volatility makes buying options less expensive, creating opportunities for premium collection. Given this context, strategies benefiting from a stable market look appealing. We might consider selling options, like iron condors, with strike prices set outside the 7.1600 to 7.2240 range. This allows us to earn premium as long as the currency pair stays within these expected limits. However, we should also be ready for a potential breakout from this consolidation. Purchasing long-dated, out-of-the-money strangles could be a cost-effective way to prepare for a major price change later in the quarter. The current low volatility environment keeps entry costs for this position relatively low. Key events to watch include upcoming speeches from central bank officials at the Jackson Hole symposium later this month and the next inflation data release. Any unexpected shifts in tone from officials could trigger a change in the current stalemate. Until then, we expect the USD to remain in its established range. Create your live VT Markets account and start trading now.

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