INTERNATIONAL CURRENCY BUZZ :
- FOREX -Dollar nurses losses against yen and euro, kiwi extends gains
- FOREX – ECB’s Draghi sinks euro after two days of gains
- FOREX -Dollar drops on profit-taking, bullish outlook intact
The pair has returned to the negative territory on Friday following the dovish remarks by President M.Draghi, who stressed the need to overcome the low levels of inflation in the region. Currently, the EUR/USD pair trades -0.15% higher at 1.0717, having posted fresh session lows at 1.0711 last hours. The main currency pair extends its bearish momentum and came under renewed selling pressure this session, after the greenback swung back into gains boosted by Fed Fischer’s comments, which signalled a Dec rate rise.Moreover, the latest set of upbeat US data added to the signs that the US economic recovery is gaining traction and hence spurred renewed bids in the USD. The number of first-time applicants for unemployment benefits fell to 271,000 in the week of November 14, against the previous week’s unrevised reading of 276,000 claims. While the Philly Fed Manufacturing Index surprised markets to the upside.
The pound held steady against the U.S. dollar on Friday, after data showed that U.K. public sector borrowing rose more than expected last month, while expectations for an upcoming U.S. rate hike continued to support the greenback.GBP/USD hit 1.5228 during European morning trade, the session low; the pair subsequently consolidated at 1.5287.Cable was likely to find support at 1.5184, the low of November 18 and resistance at 1.5335, Thursday’s high and a two-week high.Meanwhile, the dollar remained supported after the minutes of the Federal Reserve’s October meeting showed on Wednesday that a majority of board members are in favor of a December rate hike. The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 14 declined by 5,000 to 271,000 from the previous week’s total of 276,000. Sterling was higher against the euro, with EUR/GBP declining 0.45% to 0.6988.
- BUY GBP/USD ABOVE 1.5200 TARGET 1.5230 1.5260 SL 1.5170
- SELL GBP/USD BELOW 1.5150 TARGET 1.5120 1.5080 SL 1.5180