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5 Feb 2013
Forex Flash: European PMI data may see continuation of EUR/GBP downtrend – Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that today sees services PMI data in Europe and the US.
He suspects that the UK´s numbers may be positive, thus maintaining the EUR/GBP downtrend for a day longer or so. He adds that he is also looking for a robust gain in the US services ISM. He writes, “That just reinforces the positive tone to US data which, along with the Fed’s policy stance, is the driver of the risk rally and therefore a reminder that overall, we are probably in‘correction;’ rather than trend change.”
He suspects that the UK´s numbers may be positive, thus maintaining the EUR/GBP downtrend for a day longer or so. He adds that he is also looking for a robust gain in the US services ISM. He writes, “That just reinforces the positive tone to US data which, along with the Fed’s policy stance, is the driver of the risk rally and therefore a reminder that overall, we are probably in‘correction;’ rather than trend change.”