4Nov
forex-market-hours

IForex Market Trading Signals and News – 04 November 2015

INTERNATIONAL CURRENCY BUZZ :

  • FOREX – Higher risk appetite drives Aussie higher as RBA stands pat
  • FOREX – Dollar treads water, Aussie edges up after RBA stands pat
  • FOREX – Euro steady on ECB comments; yen falls on U.S., Europe data

EUR/USD
The EUR/USD pair trades -0.34% lower at fresh session lows of 1.0977, moving further away from 1.10 barrier. Growing monetary policy divergence between the Fed and ECB, with the former on track to raise rates this year and the ECB hinting last month of further easing in Dec, continues to weigh on the EUR/USD pair. Moreover, Monday’s better than expected US manufacturing PMI reports further fueled rate hike bets for this year and keeps the shorter-duration US treasury yields underpinned, thus boosting the USD bulls. The 2-year treasury yields now rally over 1.14% to 0.762%. Meanwhile the USD index rises 0.24% to 97.23. Later in the day, markets eagerly await the US factory data and ECB Draghi’s speech due for fresh insights on the EUR/USD pair. The EUR/USD pair finally gave away the 1.10 handle and accelerated to the downside in the mid-European trades, failing to benefit from weak European stocks amid broad based US dollar rebound.

GBP/USD
The pound remained almost unchanged against the dollar on Tuesday after data showing that the U.K. construction sector posted another month of solid growth in October. GBP/USD was last at 1.5411 from around 1.5418 ahead of the data. The Markit U.K. construction purchasing man- agers’ index ticked down to 58.8 last month from 59.9 in September, matching economists’ forecasts. Business activity continued to rise in all three construction sub-categories, survey compiler Markit said. The report came one day after a similar survey of the U.K. manufacturing sector showed that activity expanded at the fastest rate in 16 months in October, bolstering the outlook for fourth quarter growth. The Federal Reserve left rates on hold last week but indicated that it could still raise interest rates for the first time since 2006 at its December meeting. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% to 97.17.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.5420 TARGET 1.5440 1.5470 SL 1.5390
  • SELL GBP/USD BELOW 1.5360 TARGET 1.5340 1.5310 SL 1.5390

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