Forex Flash: EUR and GBP diverge against USD – OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that EUR and GBP are taking different paths against USD.

Starting with EURUSD, he notes that European officials thus far have displayed little discomfort with the EUR's recent rise (comments from French Finance Minister notwithstanding) while on the CFTC front, net speculative EUR longs increased further in the latest week. He feels that, "At this juncture, we remain biased towards the upside for the EUR-USD with 1.3500 likely to be hesitance to be reckoned with in the current week while initial support is expected towards 1.3300."

Looking to GBPUSD he comments that the pair attempted to stay above the 1.5800 level on Friday, but ultimately failed with the disappointing Q4 12 GDP numbers weighing on the pair. Looking forward he feels that, "we remain bearish on the GBP-USD and any failure to retake 1.5800 potentially opens the way to 1.5650. Net speculative CFTC GBP longs were reduced in the latest week, facilitating the sterling's continued slide in the last few sessions."