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17 Jan 2013
Forex Flash: G7 highlights hold downside bias – OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank has taken a look at the prospects for some leading G7 pairs ahead.
Starting with EUR/USD, he writes, “Expect some measure of resilience after Nowotny’s comments overnight with investors likely to pick up the pair on dips. Expect downside supports to emerge towards 1.3240 and then the pivotal 1.3200 area. At this juncture, inherent upside bias for the pair we think has not been fully nullified just yet and we remain constructive towards upside prospects.” Looking to the UK, he comments that his prior suspicions for Cable may be confirmed if the pair stages a breakout below 1.6000 which may leave scope for a test towards the 200 day MA (1.5909). He writes, “Background economic worries prevailed on Wednesday and this may continue to infect the cable ahead of the GDP numbers next week.” Finally, moving to USD/JPY, Ng feels that markets will be on the lookout for any downside break of USD/JPY below 88 (which would invite a move back to 87.35), with recent retracements proving to be fleeting. To the upside, he is expecting the 90 region to form a short term cap.
Starting with EUR/USD, he writes, “Expect some measure of resilience after Nowotny’s comments overnight with investors likely to pick up the pair on dips. Expect downside supports to emerge towards 1.3240 and then the pivotal 1.3200 area. At this juncture, inherent upside bias for the pair we think has not been fully nullified just yet and we remain constructive towards upside prospects.” Looking to the UK, he comments that his prior suspicions for Cable may be confirmed if the pair stages a breakout below 1.6000 which may leave scope for a test towards the 200 day MA (1.5909). He writes, “Background economic worries prevailed on Wednesday and this may continue to infect the cable ahead of the GDP numbers next week.” Finally, moving to USD/JPY, Ng feels that markets will be on the lookout for any downside break of USD/JPY below 88 (which would invite a move back to 87.35), with recent retracements proving to be fleeting. To the upside, he is expecting the 90 region to form a short term cap.