INTERNATIONAL CURRENCY BUZZ :
- FOREX -Yen edges higher as Fed uncertainty pressures dollar
- FOREX -Dollar index wallows close to 3-week low on Fed uncertainty
- FOREX -Australian, New Zealand dollars turn lower after rally
The euro eased back from three-week highs against the dollar on Tuesday after data showing that German economic sentiment deteriorated to the lowest level in a year this month. EUR/USD was last at 1.1372, down from highs of 1.1410 ahead of the report. The ZEW Centre for Economic Research said its index of German economic sentiment fell to 1.9 this month from 12.1 in September, well below economist’s forecasts for a reading of 6.0.It was the sixth consecutive monthly decline.A separate index, measuring current conditions dropped to 55.2 from 67.5 points in September, compared to expectations for a drop to 64.7.“The weakening economic development in emerging markets dampens the economic outlook for Germany’s export-oriented economy,” ZEW President Clemens Fuest said in a statement.“While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future.”
The pound weakened broadly on Tuesday after data showed that U.K. inflation turned negative again in September, while the Australian and New Zealand dollars also fell after weak trade data out of China. GBP/USD was down 0.66% to 1.5258 after hitting three-week highs of 1.5388 earlier in the session.The drop in sterling came after the Office for National Statistics reported that the consumer price index fell by 0.1% in September from a year earlier, after a flat reading in August.The weak inflation data dampened expectations for higher interest rates from the Bank of England.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was near three-week lows at 94.81.Investors were looking to U.S. economic reports on retail sales and inflation later in the week for further indications on the possible direction of monetary policy.
- BUY GBP/USD ABOVE 1.5270 TARGET 1.5290 1.5330 SL 1.5240
- SELL GBP/USD BELOW 1.5210 TARGET 1.5190 1.5160 SL 1.5240