INTERNATIONAL CURRENCY BUZZ :
- FOREX- NZD/USD rises to 2-week highs, but gains capped
- FOREX- Aussie falls against stronger greenback
- FOREX- Yen steady after retail sales better than expected in June
The euro and the yen dipped against the dollar on Wednesday ahead of the Federal Reserve’s rate statement later in the day, which it was hoped would contain clues on the timing of an initial rate hike. Investors were waiting to see if Fed policymakers will give any indication on the timing or pace of future interest rate increases. Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected. The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter after an unusually harsh winter. The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Economists had forecast a reading of 100.0.
The pound held steady against the U.S. dollar on Wednesday, after the release of upbeat data on U.K. net lending to individuals, as demand for the greenback remained broadly supported ahead of the Federal Reserve’s upcoming policy statement. GBP/USD hit 1.5620 during European morning trade, the session high; the pair subsequently consolidated at 1.5612.The Bank of England reported on Wednesday that total net lending to individuals increased by ₤3.8 billion last month, above forecasts for ₤3.0 billion and up from ₤3.1 billion in April. The report also showed that the number of final mortgage approvals rose to 66,580 in June from 64,830 in May. Economists had expected mortgage approvals to rise to 66,000 last month.
- BUY GBP/USD ABOVE 1.5620 TARGET 1.5640 1.5670 SL 1.5590
- SELL GBP/USD BELOW 1.5590 TARGET 1.5570 1.5540 SL 1.5620