INTERNATIONAL CURRENCY BUZZ :
- Forex – NZD/USD rises after N.Z. business confidence report
- Forex – AUD/USD rises despite downbeat Australian housing data
- Forex – Dollar gains against yen, euro lower
The euro remained lower against the dollar on Wednesday after data showing that the euro area fell back into negative inflation this month, adding to pressure on the European Central Bank to enlarge its stimulus program. Eurostat , the statistical body of the European Union, reported that the annual rate of inflation in the single currency bloc fell by 0.1% this month, compared to forecasts for a flat reading .It was the first time in six months that the region saw declining inflation.EUR/USD was down 0.2% to 1.1226 from around 1.1220 ahead of the report. The decline in consumer prices was largely due to lower oil prices Eurostat said, with energy prices down 8.9% on a year-over-year basis.The shared currency has been hit by speculation that the ECB could scale up its quantitative easing program after it cut its forecasts for growth and inflation earlier this month .The euro index, which measures the single currency’s strength against a trade-weighted basket of currencies, was down 0.16% to 89.77.
The pound edged higher against the U.S. dollar on Wednesday, after data showed that the U.K. economy grew in line with expectations in the second quarter, adding to optimism over the health of the British economy.GBP/USD hit 1.5180 during European morning trade, the session high; the pair subsequently consolidated at 1.5172, adding 0.13%. Cable was likely to find support at 1.5125, Tuesday’s low and a four-month low and resistance at 1.5242, Monday’s high. The U.K. Office for National Statistics reported on Wednesday that gross domestic product expanded at a rate of 0.7% in the three months to June, meeting forecasts and unchanged from a preliminary estimate. The U.K. economy grew by 0.4% in the previous quarter. Sterling was also higher against the euro, with EUR/GBP retreating 0.45% to 0.7394.
- BUY GBP/USD ABOVE 1.5170 TARGET 1.5190 1.5220 SL 1.5140
- SELL GBP/USD BELOW 1.5130 TARGET 1.5110 1.5080 SL 1.5160