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27 Mar 2013
Forex Flash: Euro and US economic disparity puts lid on EUR/USD - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that in the near term, apart from ongoing Eurozone uncertainty, the economic fundamental disparity from European and US economic fundamentals may continue to shut down EUR/USD upside.
Looking ahead today, he notes that there is a slew of Eurozone confidence indicators which can provide further cues. He is preparing for a sell rally stance for the pair in the interim. Meanwhile, he adds that further slippage below the 200D MA at 1.2883 may see the pair gravitate towards the 1.2800 area. Looking at GBP/USD, he notes that sustained uncertainty towards the macroeconomic outlook may keep GBP/USD laden in the near term, especially if contrasted with the perceived recovery in US economic prospects. He writes, “Look to fade any upticks in the pair for now within a 1.4970-1.5270 band.”
Looking ahead today, he notes that there is a slew of Eurozone confidence indicators which can provide further cues. He is preparing for a sell rally stance for the pair in the interim. Meanwhile, he adds that further slippage below the 200D MA at 1.2883 may see the pair gravitate towards the 1.2800 area. Looking at GBP/USD, he notes that sustained uncertainty towards the macroeconomic outlook may keep GBP/USD laden in the near term, especially if contrasted with the perceived recovery in US economic prospects. He writes, “Look to fade any upticks in the pair for now within a 1.4970-1.5270 band.”