EUR/USD: underwent a sell-off after the shocking French PMI data and printed a low of 1.3685 yesterday but then steadily inched up above 1.3700, taking out stops on the way. Overnight, the pair temporarily dipped below the figure but easily recovered the losses. Look to buy on dips intraday with a stop below 1.3685.
GBP/USD: CABLE was capped at 1.6700 by gamma traders yesterday after BoE’s Weale talked up the chances of earlier rate hikes. The pair triggered weak stops through the European low overnight. We still prefer to buy here with a stop through 1.66.