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5 Jul 2013
Flash: EUR/USD maintains multi-day target of 1.2850 – Westpac
FXstreet.com (New York) - Even after todays ECB waves, we will get plenty of commentary on the latest sovereign concerns from the Eurogroup meeting of finance ministers on Monday, notes Sean Callow, a Global FX Strategist at Westpac.
In addition, upcoming mainland Europe data releases include German factory orders (later today), May German IP (Monday) then French and Italian IP (Wednesday) – UK May IP is set for a Tuesday release.
“Regarding the EUR/USD, five-week lows encourage us to persist with our short position entered at 1.3208. However, price action has been rather mixed and perhaps Draghi will be able to calm nerves over Portugal and Greece. We are inclined to pull our stop loss into the money but for now stick with our 1.2850 multi-day target.” GBP/USD should follow the broad trend i.e. struggle but UK data has certainly improved of late. EUR/GBP should break its multi-week range to the downside, through 0.8470/75.
In addition, upcoming mainland Europe data releases include German factory orders (later today), May German IP (Monday) then French and Italian IP (Wednesday) – UK May IP is set for a Tuesday release.
“Regarding the EUR/USD, five-week lows encourage us to persist with our short position entered at 1.3208. However, price action has been rather mixed and perhaps Draghi will be able to calm nerves over Portugal and Greece. We are inclined to pull our stop loss into the money but for now stick with our 1.2850 multi-day target.” GBP/USD should follow the broad trend i.e. struggle but UK data has certainly improved of late. EUR/GBP should break its multi-week range to the downside, through 0.8470/75.