INTERNATIONAL CURRENCY BUZZ :
- FOREX -NZD/USD rises, recovers from China rate cut
- FOREX -AUD/USD higher but upside seen limited
- FOREX -Dollar turns lower but losses held in check
The euro edged higher against the dollar on Monday but gains were held in check by prospects for more central bank easing and after data showing that German business conditions deteriorated this month.EUR/USD was last up 0.12% to 1.1030 after touching highs of 1.1057 earlier. The single currency fell to lows of 1.0995 on Friday, the weakest since August 11.The euro weakened late last week after European Central Bank President Mario Draghi signaled that further monetary easing is likely later this year.
The GBP/USD pair fell to a low of 1.5306 as the dovish ECB and an interest rate cut from the PBOC led to a broad based strength in the US dollar. The pair suffered a daily close below its 200-DMA. seen at 1.5331. The strong UK retail sales report released last week failed to take out the falling trend line resistance on the daily chart, leading to a sell-off on Friday.The pair remains in the positive territory at the beginning of the week against a backdrop of rising risk appetite and profit taking around the dollar. In the data space, UK’s Mortgage Approvals by BBA have come in on the softer side at 44.489K during September while CBI’s Industrial Trends Survey is due later.
- BUY GBP/USD ABOVE 1.5360 TARGET 1.5380 1.5410 SL 1.5330
- SELL GBP/USD BELOW 1.5300 TARGET 1.5280 1.5250 SL 1.5330