INTERNATIONAL CURRENCY BUZZ :
- Forex – NZD/USD slips lower in cautious trade
- Forex – AUD/USD drops near 6-year lows after Australian data
- Forex – Dollar holds steady, U.S. jobless report on tap
The GBP/USD pair trades -0.18% lower at 1.5274, bouncing-off lows reached at 1.5241 post the UK data release. The offered tone surrounding the cable reduces as the GBP traders locked-in gains on their shorts after the major fell to fresh three-month lows. While, GBP/USD also attempts recovery as calm spreads across the FX board ahead of the ECB meeting with greenback muted against its major competitors. However, the British currency is likely to remain undermined against the US dollar as the recent series of downbeat UK macro releases continue to sour the sentiment around sterling. Earlier this session, GBP/USD tumbles to the lowest levels in three month after the UK services sector activity worsened in August adding to the recent poor manufacturing and construction PMI reports. Meanwhile, focus now shifts to the upcoming ECB decision ahead of a set of crucial economic releases from the US due later yesterday.
The EUR/USD pair failed to sustain the EZ PMIs-led gains and retreated to the familiar range near 1.1220 levels as the EUR,GBP traders gear up for the ECB event due later shortly. The EUR/USD pair trades modestly flat at 1.1223, facing rejection at 1.1243 session highs. The major trades in 50 pip narrow range during the European session, awaiting the outcome of the ECB meeting and Draghi’s speech at the press conference. Moreover, persisting risk sentiment further boosted by strengthening European indices, continue to favour the newly crowned risk currency – US dollar, negatively weighing on the EUR/USD pair. Focus now shifts back towards the European Central Bank (ECB) meeting with markets expecting a clear dovish bias from the ECB policymakers in light of the recent financial market turmoil and persisting lower EZ inflation levels. Markets further expect that the central bank may talk down the currency in a bid to combat softer inflation.
- BUY GBP/USD ABOVE 1.5255 TARGET 1.5275 1.5305 SL 1.5225
- SELL GBP/USD BELOW 1.5215 TARGET 1.5195 1.5165 SL 1.5245