INTERNATIONAL CURRENCY BUZZ :
- FOREX -Dollar near 3 1/2-week low, Aussie dogged by China woes
- FOREX -NZD/USD rises, recovers from RBNZ comments
- FOREX -AUD/USD slides lower despite positive Australian data
The EUR/USD continued to gain moving to 1.1372 with no help from today’s eurozone inflation which remained at 0%. The dollar halted its decline leaving the euro overvalued. The dollar was languishing at three-and-a-half week lows against the other major currencies on Wednesday as weak Chinese inflation data fueled expectations that the Federal Reserve will delay hiking rates for longer. EUR/USD was up 0.36% to 1.1420, the most since September 18.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 U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.29% to three-and-a-half week lows of 94.52.
The pound extended gains against the dollar on Wednesday after data showing that the U.K. unemployment rate fell to a new seven-year low and wage growth continued to outpace inflation. GBP/USD was up 0.75% to 1.5361 from around 1.5301 ahead of the jobs report.The Office for National Statistics said the jobless rate ticked down to 5.4% in the three months to August from 5.5% in the preceding three- month period.It was the lowest unemployment rate since the second quarter of 2008. The Bank of England has said it is closely watching wage growth as it considers when to start raising interest rates.Sterling was also higher against the euro, with EUR/GBP down 0.49% at 0.7425.In the euro zone, data on Thursday showed that industrial production fell 0.5% in August after an upwardly revised 0.8% increase in July.The U.S. dollar index, which measures the greenback’s strength against a trade- weighted basket of six major currencies, was down 0.27% to three-and-a-half week lows of 94.55.
- BUY GBP/USD ABOVE 1.5350 TARGET 1.5370 1.5400 SL 1.5320
- SELL GBP/USD BELOW 1.5300 TARGET 1.5280 1.5250 SL 1.5330