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19 Feb 2013
Forex Flash: EUR/USD & GBP/USD open to further downside - OCBC Bank
Emmanuel Ng of OCBC Bank notes that looking ahead today, both EUR/USD and GBP/USD are open to further tests of the downside.
Starting with EUR/USD, he notes that any attempt for spot to take the 1.3400 region may pave the way towards the 55-day MA (1.3277). In addition, he feels that the latest reiterations from the ECB’s Draghi regarding the EUR’s influence on inflation may also stall EUR bulls in the near term.
Shifting to GBP/USD, Ng comments that the pair attempted to grind lower yesterday, under the shadow of recent dovish BoE rhetoric and less than encouraging economic releases. He is expecting the tone for the GBP to remain vulnerable ahead of the BoE MPC minutes tomorrow, and overall, he feels that the pair may continue to eye 1.5450 intraday, with initial support expected at 1.5400.
Starting with EUR/USD, he notes that any attempt for spot to take the 1.3400 region may pave the way towards the 55-day MA (1.3277). In addition, he feels that the latest reiterations from the ECB’s Draghi regarding the EUR’s influence on inflation may also stall EUR bulls in the near term.
Shifting to GBP/USD, Ng comments that the pair attempted to grind lower yesterday, under the shadow of recent dovish BoE rhetoric and less than encouraging economic releases. He is expecting the tone for the GBP to remain vulnerable ahead of the BoE MPC minutes tomorrow, and overall, he feels that the pair may continue to eye 1.5450 intraday, with initial support expected at 1.5400.