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20 Jun 2013
Flash: FOMC to cap EUR/USD and GBP/USD - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank believes that yesterday´s FOMC will provide an upside cap to both EUR/USD and GBP/USD.
Starting with EUR/USD, he feels that 1.3400 is now perceived to be increasingly concrete, and in the near term, investors should look towards a consolidation towards the initial floor of 1.3200 before 1.3120. Moving to GBP/USD, he adds that recent upside may have been defused in the near term as markets contemplate the tapering schedule from Bernanke. He writes, “Look for cable to consolidate around the 1.5400 level in the interim and break below the 55-day MA (1.5373) opens the way to the 100-day MA (1.5323) and then 1.5220.”
Starting with EUR/USD, he feels that 1.3400 is now perceived to be increasingly concrete, and in the near term, investors should look towards a consolidation towards the initial floor of 1.3200 before 1.3120. Moving to GBP/USD, he adds that recent upside may have been defused in the near term as markets contemplate the tapering schedule from Bernanke. He writes, “Look for cable to consolidate around the 1.5400 level in the interim and break below the 55-day MA (1.5373) opens the way to the 100-day MA (1.5323) and then 1.5220.”