INTERNATIONAL CURRENCY BUZZ :
- FOREX -Dollar slides lower vs. rivals after Fed meeting minutes
- FOREX -Aussie ticks higher as Fed minutes signal hold on rates
- FOREX -Growth-linked currencies at multi-week highs on risk rally
The dollar was almost unchanged against the euro on Friday and gained ground against the yen, after the European Central Bank indicated that its policy will remain accomodative for as long as necessary, while the minutes of the Federal Reserve came with no surprises. EUR/USD was steady at 1.1279.In the minutes of the ECB’s September policy meeting, officials said that downside risks to inflation intensified over the summer, but that they need more time to gauge the impact of market volatility and slower growth in China. Meanwhile, the Fed’s September meeting minutes indicated that policymakers were still watching domestic inflation and the impact of slower global growth when considering when to raise interest rates.
The pound trimmed gains against the U.S. dollar on Friday, pulling back from a two-week high after data showed that the U.K. trade deficit narrowed less-than-expected in August, dampening optimism over the strength of the British economy.GBP/USD pulled back from 1.5383, the pair’s highest since September 22, to hit 1.5346, still up just 0.01%.Cable was likely to find support at 1.5257, Thursday’s low and resistance at 1.5456, the high of September 15.According to the minutes, the path interest rates will follow over the next few years will depend on economic circumstances. Meanwhile, demand for the greenback remained under pressure after the Federal Reserve gave little indication on when it plans to raise interest rates.
- BUY GBP/USD ABOVE 1.5330 TARGET 1.5350 1.5380 SL 1.5300
- SELL GBP/USD BELOW 1.5280 TARGET 1.5260 1.5230 SL 1.5310