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6 Mar 2013
Forex Flash: Europe split highlighted by PMIs - OCBC Bank
Emmanuel Ng of OCBC Bank notes that looking ahead, the latest slew of PMIs out of Europe continue to highlight a North South Divide while Italian political fragility may well remain on the cards.
As such he feels that significant upside for the common currency may continue to be greeted with skepticism ahead of the ECB on Thursday. He writes, “Expect the pair to meet resistance towards the 100-day MA (1.3128) while the pair may also be bordered on the downside by the 1.3000 support level.”
Shifting to GBP/USD he notes that sterling managed an all too brief rally above 1.5150 on the back of better than expected February services PMI reading, and markets may remain guarded towards the pound ahead of the BoE MPC tomorrow. He writes, “We look for the pair to remain somewhat heavy barring a breach of 1.5315 with the recent lows around 1.4985 still in the immediate vicinity.”
As such he feels that significant upside for the common currency may continue to be greeted with skepticism ahead of the ECB on Thursday. He writes, “Expect the pair to meet resistance towards the 100-day MA (1.3128) while the pair may also be bordered on the downside by the 1.3000 support level.”
Shifting to GBP/USD he notes that sterling managed an all too brief rally above 1.5150 on the back of better than expected February services PMI reading, and markets may remain guarded towards the pound ahead of the BoE MPC tomorrow. He writes, “We look for the pair to remain somewhat heavy barring a breach of 1.5315 with the recent lows around 1.4985 still in the immediate vicinity.”