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9 Apr 2013
Forex Flash: EUR supported by Japanese diversionary investment flows - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that in the near term, market talk of diversionary investment flows out of Japan may benefit the EUR for as long as system tail risks remain under wraps.
To this end, he feels that any ability to stay afloat above 1.3000 near term may see an eventual test towards the 55-day MA (1.3157). Looking to GBP/USD, Ng adds that the pair chopped lower on Monday and fell through 1.5300 as background macroeconomic worries resurfaced and expectations for potential monetary easing continued to circulate. He writes, “However, these concerns may well have been very well priced at this juncture and the GBP/USD may tentatively pick higher barring fresh Eurozone concerns and the strong dollar story blunted for now. Expect initial resistance to emerge around the 55-day MA (1.5330).”
To this end, he feels that any ability to stay afloat above 1.3000 near term may see an eventual test towards the 55-day MA (1.3157). Looking to GBP/USD, Ng adds that the pair chopped lower on Monday and fell through 1.5300 as background macroeconomic worries resurfaced and expectations for potential monetary easing continued to circulate. He writes, “However, these concerns may well have been very well priced at this juncture and the GBP/USD may tentatively pick higher barring fresh Eurozone concerns and the strong dollar story blunted for now. Expect initial resistance to emerge around the 55-day MA (1.5330).”