10 Jun 2013
Flash: Spec EUR shorts pared as GBP/USD holds below 1.5600 - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that Speculative EUR Shorts pared last week while NFP numbers kept GBP/USD under the 1.5600 ceiling on Friday.
He begins by noting that on the CFTC front, net speculative EUR shorts were pared in the latest week and the EUR/USD may remain capped ahead of 1.3250 and then 1.3310 in the near term pending further news flow out of both sides of the Atlantic. He writes, “While lingering USD optimism may see a test beyond 1.3200 towards 1.3175 in the short term any further chatter indicating slim prospects of negative interest rates out of the ECB may also see the pair bouncing on dips.”
Moving to GBP/USD, he adds that Friday´s NFP numbers kept the pair under the 1.5600 ceiling on Friday. Going ahead, he feels that despite the recent string of somewhat encouraging data releases, doubts about the shelf life of the sterling’s recent outperformance may persist. On the CFTC front, he sees that net speculative GBP shorts increased slightly in the latest week although GBP/USD continued to scrap higher through the course of the week. He writes, “In the interim, cable may continue to find support in the upper half of its 1.5000-1.5600 range carved out since mid-March barring strongly positive USD- news flow.”
He begins by noting that on the CFTC front, net speculative EUR shorts were pared in the latest week and the EUR/USD may remain capped ahead of 1.3250 and then 1.3310 in the near term pending further news flow out of both sides of the Atlantic. He writes, “While lingering USD optimism may see a test beyond 1.3200 towards 1.3175 in the short term any further chatter indicating slim prospects of negative interest rates out of the ECB may also see the pair bouncing on dips.”
Moving to GBP/USD, he adds that Friday´s NFP numbers kept the pair under the 1.5600 ceiling on Friday. Going ahead, he feels that despite the recent string of somewhat encouraging data releases, doubts about the shelf life of the sterling’s recent outperformance may persist. On the CFTC front, he sees that net speculative GBP shorts increased slightly in the latest week although GBP/USD continued to scrap higher through the course of the week. He writes, “In the interim, cable may continue to find support in the upper half of its 1.5000-1.5600 range carved out since mid-March barring strongly positive USD- news flow.”