FXstreet.com (Barcelona) – Emmanuel Ng of OCBC Bank feels that skepticism towards excessive EUR/USD upside may yet persist despite the pair failing to stage a breakout below 1.3058 on Wednesday.
He feels that pending further news flow from the Italian front, the pair may thus base build near current levels with 1.3182 expected to be a near term resistance. In the interim, we retain a heavy stance for the pair. Looking to Cable, he feels that on balance he thinks that the net impact of the continued stream of BoE rhetoric in recent sessions indicates continued comfort with the possibility of further QE and/or sustained GBP softness. He writes, “As such, expect the GBP/USD to continue to trade heavy while orbiting the 1.5200 neighborhood.”