INTERNATIONAL CURRENCY BUZZ :
- FOREX -Dollar little changed after upbeat U.S. housing data
- FOREX -Growth currencies weaken after Chinese stocks fall sharply
- FOREX -Euro firms as prospects for ECB easing wane on solid data
The euro firmed against the dollar on Wednesday after solid euro zone data tempered prospects of the European Central Bank implementing additional stimulus before year-end. The euro was about 0.2 percent to $1.1362 EUR= , adding to Tuesday’s modest gains, after it had struck a 10-day trough of $1.1306 at the start of the week. Against the yen, the euro firmed about 0.2 percent to 136.20 EUR/JPY. The euro’s upturn weighed on the U.S. dollar index against a basket of six major currencies. It dipped about 0.1 percent to 94.782 .DXY , but remained well above last week’s seven-week low of 93.806. Analysts believe the euro is still prone to volatility ahead of the ECB policy meeting on Thursday. While the ECB may not ease this month, markets remain wary of the central bank hinting at more stimulus later this year.
The pound trimmed losses against the U.S. dollar on Wednesday, easing off a one-week trough after the release of upbeat U.K. data, although demand for the greenback remained mildly supported by the previous session’s U.S. housing data.GBP/USD eased off 1.5415, the pair’s lowest since October 15, to hit 1.5446, steady for the day. The U.K. Office for National Statistics reported that public sector net borrowing fell to £8.63 billion in September from £10.79 billion in August, whose figure was revised from a previously estimated £11.31 billion. Analysts had expected public sector net borrowing to decline to £9.40 billion last month. Meanwhile, the dollar remained supported after the U.S. Commerce Department reported on Tuesday that housing starts rose 6.5% to 1.206 million units last month from August’s total of 1.132 million units.
- BUY GBP/USD ABOVE 1.5480 TARGET 1.5500 1.5530 SL 1.5450
- SELL GBP/USD BELOW 1.5420 TARGET 1.5400 1.5370 SL 1.5450