TRADING TIPS :
- Forex-Dollar near recent highs as oil extends selloff.
- Forex-Yen gains in early Asia with focus on oil price slump.
- Forex-USD/CAD dips, still near 5-1/2 year highs.
GBP/USD touching lows of 1.5078 after data on Tuesday showing the annual rate of U.K. inflation rose at the slowest rate since May 2000 in December.Official figures showed that annual rate of consumer inflation in the U.K. slowed to 0.5% last month, underlining expectations that the Bank of England will keep rates on hold this year.The annual rate of consumer inflation slowed to 0.5% last month the Office of National Statistics said, down from 1.0% in November. It was the lowest rate of inflation since May 2000. Economists had expected a smaller decline to 0.7%.Consumer prices were unchanged month-on-month, compared to expectations for a reading of 0.1% after falling 0.3% in November.
EUR/USD down 0.36% to 1.1795.Data last week showed that consumer prices in the euro area fell in December for the first time since October 2009. The decline in consumer prices fuelled expectations that the European Central Bank could implement quantitative easing measures as soon as its next meeting on January 22.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to 92.43, not far from the 12-year peaks of 92.76 scaled last week supported by weakness in the euro.The single currency remained under pressure amid speculation that the European Central Bank will embark on full blown quantitative easing as soon as its next meeting on January 22.
1. Buy GBP/USD Above 1.5195-TG: 1.5215/1.5235 SL 1.5165
2. Sell GBP/USD Below 1.5114-TG: 1.5094/1.5064 SL 1.5144