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22 May 2013
Flash: EUR outperforming G10 while BoE in focus - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR has been a relative outperformer across G10 space of late.
Nevertheless, he feels that EUR/USD may have to stage a rally back above the 1.3000 neighborhood (with the 55-day and 200-day MAs also at 1.2991 1.3015 respectively) to neutralize its recent heaviness. On the downside he expects initial supports towards 1.2880/00. He writes, “Needless to say near term prospects for the pair may hinge on Bernanke tonight.” Looking to GBP/USD, he notes that the BOE MPC minutes are due later today and in the current environment, any further hints of dovishness may imperil the GBP further. He writes, “Notably, the pair continues to reside below its 55-day MA (1.5255) with the nearest support expected towards 1.5100.”
Nevertheless, he feels that EUR/USD may have to stage a rally back above the 1.3000 neighborhood (with the 55-day and 200-day MAs also at 1.2991 1.3015 respectively) to neutralize its recent heaviness. On the downside he expects initial supports towards 1.2880/00. He writes, “Needless to say near term prospects for the pair may hinge on Bernanke tonight.” Looking to GBP/USD, he notes that the BOE MPC minutes are due later today and in the current environment, any further hints of dovishness may imperil the GBP further. He writes, “Notably, the pair continues to reside below its 55-day MA (1.5255) with the nearest support expected towards 1.5100.”