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5 Feb 2013
Forex Flash: EUR/USD consolidates as GBP/USD remains dogged by concerns – OCBC Bank
Emmanuel Ng has taken a look at EUR/USD and GBP/USD and the issues driving the European majors for the day ahead.
Starting with EUR/USD he notes that the pairs consolidation yesterday may not portend a reversal for the pair´s bias just yet, although he reiterates that on a structural basis, the common currency may be attempting to front load its positive potential excessively.
In the near term however, he sees that the ECB remains on a slightly more positive plane relative to its peers, and this may continue to lead the common unit inherent support for now. In the interim, he feels that the fall below 1.3500 may see the pair consolidating further to 1.3475 before 1.3450 intra-day.
Moving to GBP/USD, Ng comments that looking forward, underlying macro and rating concerns may be expected to continue to dog the GBP despite yesterday’s Cable price action. In the interim, he expects the pair to populate the lower reaches of a 1.5675-1.5900 band pending further progress on rotational plays and the ECB/BOE on Thursday.
Starting with EUR/USD he notes that the pairs consolidation yesterday may not portend a reversal for the pair´s bias just yet, although he reiterates that on a structural basis, the common currency may be attempting to front load its positive potential excessively.
In the near term however, he sees that the ECB remains on a slightly more positive plane relative to its peers, and this may continue to lead the common unit inherent support for now. In the interim, he feels that the fall below 1.3500 may see the pair consolidating further to 1.3475 before 1.3450 intra-day.
Moving to GBP/USD, Ng comments that looking forward, underlying macro and rating concerns may be expected to continue to dog the GBP despite yesterday’s Cable price action. In the interim, he expects the pair to populate the lower reaches of a 1.5675-1.5900 band pending further progress on rotational plays and the ECB/BOE on Thursday.