Insights 
VT 
The US Dollar (USD) is projected to fluctuate between 7.1300 and 7.1450 in the short term. In the longer term, the expected trading range is between 7.1200 and 7.1550, according to analysts from UOB Group.
In the past 24 hours, the USD traded between 7.1361 and 7.1495, closing at 7.1403, a slight change of +0.04%. Today, it is anticipated that the USD will trade within the range of 7.1300 to 7.1450.
Future Analysis
Looking ahead to one to three weeks, analysts maintain that the USD will remain within a broad range. As mentioned in their latest report, they expect the USD to continue trading between 7.1200 and 7.1550.
The information is provided by the FXStreet Insights Team, composed of journalists who curate market observations. These insights include notes from commercial sources and additional analysis from both internal and external experts.
Based on yesterday’s minimal price movement, we expect the USD/CNH to continue trading sideways in a tight range, likely between 7.1300 and 7.1450. Over the next few weeks, this consolidates into a broader channel of 7.1200 to 7.1550. This lack of a strong directional trend suggests that betting on a major breakout is unlikely to be profitable.
Given this low-volatility forecast, derivative strategies that profit from time decay and stability are preferable. Traders should consider selling options premium through strategies like short strangles or iron condors. The goal is to collect income as the currency pair remains within the predicted boundaries.
Economic Context
This view is supported by recent stable economic data from both sides. The latest US inflation report for September 2025 came in at 2.5%, right on expectations, which reduces the odds of any surprise interest rate moves from the Federal Reserve. This removes a key potential catalyst for dollar volatility in the near term.
On the other side, China’s Q3 2025 GDP growth was reported at a steady 4.8%, and industrial production figures have also met forecasts. The People’s Bank of China has also consistently set the daily yuan fixing rate to prevent sharp moves, reinforcing market stability. This coordinated policy action signals a preference for a controlled currency environment.
We saw similar periods of compressed volatility back in late 2023 and throughout much of 2024. During those times, the central bank’s firm guidance kept the pair locked in a narrow channel for months. Strategies that sold volatility then proved to be highly effective.
Therefore, traders could structure an iron condor by selling call options with a strike price above 7.1550 and selling put options with a strike below 7.1200. This creates a defined-risk position that profits as long as USD/CNH closes between the short strikes at expiration in the coming weeks. The primary driver of profit will be the passage of time, known as theta decay.
