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16 May 2013
Forex Flash: EUR/USD trips as GBP/USD stabilises - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD tripped yesterday, while GBP/USD stabilised following the BoE Inflation Report.
He begins by noting that EUR/USD tripped below 1.2900 on Wednesday but managed to bounce off the 1.2850 level although going ahead, he remains skeptical of significant upside prospects for the pair. In the near term, he continues to look for a top heavy profile within a 1.2780-1.3000 band. Elsewhere, he notes that GBP/USD managed to stabilize on Wednesday with the BOE Inflation Report shading higher its GDP forecasts (while lowering the inflation forecasts as expected) with outgoing governor King also slightly more upbeat. Going ahead, he feels that the pair may have to demonstrate a sustained break back above the 55-day MA (1.5246), failing which, he is looking for a test towards 1.5170 instead.
He begins by noting that EUR/USD tripped below 1.2900 on Wednesday but managed to bounce off the 1.2850 level although going ahead, he remains skeptical of significant upside prospects for the pair. In the near term, he continues to look for a top heavy profile within a 1.2780-1.3000 band. Elsewhere, he notes that GBP/USD managed to stabilize on Wednesday with the BOE Inflation Report shading higher its GDP forecasts (while lowering the inflation forecasts as expected) with outgoing governor King also slightly more upbeat. Going ahead, he feels that the pair may have to demonstrate a sustained break back above the 55-day MA (1.5246), failing which, he is looking for a test towards 1.5170 instead.