30 Jun 2014
EUR/USD: Buy dips near term - OCBC
FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that near term, market may adhere to a buy-dips posture in EUR/USD.
Key Quotes
"The EUR may continue to float on the soft dollar in the near term with German June CPI readings coming in warmer than expected (but the batch of confidence indicators disappointed) while the ECB’s Mersch noted over the weekend that the central bank currently does not perceive and acute risk of deflation and that the softening of the shorter end of the curve indicated that its recent measures have had the desired effect. Near term, market may adhere to a buy-dips posture for the pair but expect limited elevation ahead of the ECB meeting later this week."
"On the CFTC front, note that leveraged EUR shorts were also pared in the latest week. Beyond 1.3650, expect the 200-day MA (1.3674) and the 55-day MA (1.3701) to cap while 1.3600 may present a near term floor."
Key Quotes
"The EUR may continue to float on the soft dollar in the near term with German June CPI readings coming in warmer than expected (but the batch of confidence indicators disappointed) while the ECB’s Mersch noted over the weekend that the central bank currently does not perceive and acute risk of deflation and that the softening of the shorter end of the curve indicated that its recent measures have had the desired effect. Near term, market may adhere to a buy-dips posture for the pair but expect limited elevation ahead of the ECB meeting later this week."
"On the CFTC front, note that leveraged EUR shorts were also pared in the latest week. Beyond 1.3650, expect the 200-day MA (1.3674) and the 55-day MA (1.3701) to cap while 1.3600 may present a near term floor."