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28 May 2013
Flash: EUR/USD finds support as GBP/USD watches Carney entrance - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD found partial support while GBP/USD looks focused on the pending arrive of Carney at the BoE.
He begins by commenting that EUR/USD found partial support after the ECB’s Asmussen expressed caution towards negative deposit rates, although he added that the central bank would adhere to an expansionary policy for as long as necessary. He sees that in the near term, the pair may continue to range trade with the 55-day MA (1.2980) while 1.2823 is seen as a near term support. Moving to GBP/USD, he adds that structurally, markets may continue to harp on the imminent arrival of the new governor Carney in July and the attendant dovish fears, placing the GBP in a somewhat disadvantageous position. In the interim, he feels that the pair may also continue to be swayed by broad dollar moves with a potential towards the 1.5000 area.
He begins by commenting that EUR/USD found partial support after the ECB’s Asmussen expressed caution towards negative deposit rates, although he added that the central bank would adhere to an expansionary policy for as long as necessary. He sees that in the near term, the pair may continue to range trade with the 55-day MA (1.2980) while 1.2823 is seen as a near term support. Moving to GBP/USD, he adds that structurally, markets may continue to harp on the imminent arrival of the new governor Carney in July and the attendant dovish fears, placing the GBP in a somewhat disadvantageous position. In the interim, he feels that the pair may also continue to be swayed by broad dollar moves with a potential towards the 1.5000 area.