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5 Jun 2013
Flash: EUR/USD ranges while GBP/USD softens - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD has ranged while GBP/USD softened overnight.
He begins by noting that EUR/USD traded in a steady range on Tuesday and he continue to adhere to supported tone for the pair ahead of the ECB on Thursday. Intra-day, he recommends looking to the services PMIs for further cues and the 200-day MA (1.3040) may continue to serve as a near term support. Meanwhile, initial resistance for EUR/USD is expected towards 1.3100 and then the 100-day MA (1.3107).
Shifting focus, he comments that GBP/USD also softened to trade on the wrong side of 1.5300 on Tuesday as despite some support from the better than expected May construction PMI, the May BRC shop price index slipped into contraction territory. For today look to the May services PMI for more domestic cues ahead of the ECB/BOE on Thursday and the US labor market numbers on Friday. In the near term, he feels that GBP/USD may resist downside dips pending further USD cues with the 55-day MA (1.5284) and the 1.5230 seen as near term supports while visibility towards 1.5345 and1.5400 may grow stronger if the USD undergoes a further capitulation.
He begins by noting that EUR/USD traded in a steady range on Tuesday and he continue to adhere to supported tone for the pair ahead of the ECB on Thursday. Intra-day, he recommends looking to the services PMIs for further cues and the 200-day MA (1.3040) may continue to serve as a near term support. Meanwhile, initial resistance for EUR/USD is expected towards 1.3100 and then the 100-day MA (1.3107).
Shifting focus, he comments that GBP/USD also softened to trade on the wrong side of 1.5300 on Tuesday as despite some support from the better than expected May construction PMI, the May BRC shop price index slipped into contraction territory. For today look to the May services PMI for more domestic cues ahead of the ECB/BOE on Thursday and the US labor market numbers on Friday. In the near term, he feels that GBP/USD may resist downside dips pending further USD cues with the 55-day MA (1.5284) and the 1.5230 seen as near term supports while visibility towards 1.5345 and1.5400 may grow stronger if the USD undergoes a further capitulation.