INTERNATIONAL CURRENCY BUZZ :
- FOREX – Dollar backs off highs, but rate hike view supports
- FOREX -NZD/USD moves higher but gains limited
- FOREX -Dollar edges down from highs as investors take profits
The dollar edged away from a 6-1/2-month high against the euro on Monday, as investors took profits on the greenback’s surge after bumper U.S. jobs data bolstered bets on the U.S. Federal Reserve raising interest rates in December. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.22% to 99.07, off Friday’s highs of 99.29, the highest level since mid-April.The greenback strengthened across the board after the Labor Department reported that the U.S. economy added 271,000 jobs last month, well ahead of the 180,000 expected by economists and the largest increase since December. “The lower euro/dollar goes, the less need there is for the ECB to do more,” said BNP Paribas (PA:BNPP) currency strategist Michael Sneyd in London.
The GBPUSD pair continued its negative trading to break 1.5085 level and settle below it, which opens the way to continue the bearish trend in the upcoming period, as our next target is located at 1.4880, and the price needs to break 1.5000 barrier to ease the mission of achieving the mentioned target. The GBP/USD pair seems unable to pick up, now retreating after advancing up to 1.5087 with the European opening. With no news in the UK in an usual lackluster Monday, market’s sentiment towards the Pound has changed dramatically last week, as the Bank of England downgraded its inflation and growth forecast, which diminish chances of a rate hike in the kingdom, whilst much better-than-expected US employment figures suggests the American country will trigger its first rate hike in nearly a decade next December.
- BUY GBP/USD ABOVE 1.5101 TARGET 1.5121 1.5161 SL 1.5080
- SELL GBP/USD BELOW 1.5040 TARGET 1.5020 1.4980 SL 1.5070