TRADING TIPS :
- Forex-Dollar index holds near 12-year peak in light trade.
- Forex- Yen flat to stronger after current account surplus data.
- Forex-EUR/USD remains close to 9-year lows in subdued trade.
GBP/USD hit 1.5099 during European morning trade, the session low; the pair subsequently consolidated at 1.5120, shedding 0.25%. Cable was likely to find support at 1.5032, the low of January 8 and an 18-month low and resistance at 1.5337, the high of January 5. The pound slid to nearly 18-month lows against the U.S. dollar in quiet trade on Monday, as demand for the greenback remained broadly supported despite Friday’s downbeat U.S. average earnings data.The Labor Department reported on Friday that the economy added 252,000 jobs in December, more than the 240,000 forecast by economists. The unemployment rate ticked down to a six-and a-half year low 5.6%.However, average earnings fell by 0.2% last month and were up by only 1.7% from a year earlier.
EUR/USD hit 1.1786 during European afternoon trade, the session low; the pair subsequently consolidated at 1.1814, shedding 0.24%. The pair was likely to find support at 1.1753, the low of January 8 and a nine-year low and resistance at 1.1969, the high of January 6. Sentiment on the euro remained vulnerable amid speculation that the European Central Bank will embark on full blown quantitative easing as soon as its next meeting on January 22. The euro remained near nine-year lows against the U.S. dollar in subdued trade on Monday, as expectations for fresh stimulus measures in the euro zone continued to weigh, while demand for the greenback remained broadly supported.
1. Buy GBP/USD Above 1.5218-TG: 1.5238/1.5268 SL 1.5188
2. Sell GBP/USD Below 1.5145-TG: 1.5125/1.5095 SL 1.5175