Flash: EUR/USD weighed by data as GBP/USD led by USD story - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR/USD appears to be weighed on Friday by contrasting data while GBP/USD looks to be lead by global developments and the dollar story.

He begins by noting that apart from encouraging US data releases, EUR/USD was also weighed on Friday by contrasting with the EZ’s numbers (higher unemployment rate, higher inflation). Meanwhile, on the CFTC front, he adds that net speculative EUR shorts increased in the latest week but the pair may continue to attempt to resist probes below the 55-day MA (1.2980) and then the 1.2950 area ahead of the datastream and ECB this week. In the interim, he sees that the 200-day MA (1.3035) may cap pending further cues. Looking to GBP/USD, Ng notes that the pair may remain more a function of global developments and the USD story, with domestic factors meanwhile continuing to temper excessive GBP strength. On the CFTC front, he writes, “net speculative GBP shorts were pared slightly in the latest week and the 55-day MA (1.5274) may continue to cap with the 1.5000 floor on the downside still looking conspicuous this week.”