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4 Jun 2013
Flash: EUR/USD and GBP/USD supported - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that both EUR/USD and GBP/USD look to be supported by better than expected Manufacturing PMIs.
He begins by commenting that additionally, EUR/USD also found support from yesterday’s Fed commentary, and he remains on a supported stance in the near term. He writes, “Downside supports for EUR/USD are expected at the 200-day MA (1.3038) and the 55-day MA (1.2984) while any clearance above 1.3100 may see a test towards the 1.3200 neighborhood.”
Looking to GBP/USD, Ng comments that it also found similar support to EUR/USD, and with USD likely to be somewhat given to profit taking in the near term, investors should look also to the UK services and construction PMIs for further cues ahead of the BOE on Thursday. He writes, “We stay neutral GBP/USD for now with a slight bias towards USD vulnerability in the near term. With the 55-day MA (1.5280) now serving as a support, 1.5400 may cap intra-day.”
He begins by commenting that additionally, EUR/USD also found support from yesterday’s Fed commentary, and he remains on a supported stance in the near term. He writes, “Downside supports for EUR/USD are expected at the 200-day MA (1.3038) and the 55-day MA (1.2984) while any clearance above 1.3100 may see a test towards the 1.3200 neighborhood.”
Looking to GBP/USD, Ng comments that it also found similar support to EUR/USD, and with USD likely to be somewhat given to profit taking in the near term, investors should look also to the UK services and construction PMIs for further cues ahead of the BOE on Thursday. He writes, “We stay neutral GBP/USD for now with a slight bias towards USD vulnerability in the near term. With the 55-day MA (1.5280) now serving as a support, 1.5400 may cap intra-day.”