INTERNATIONAL CURRENCY BUZZ :
- FOREX -Kiwi declines against greenback in late trade
- FOREX -Aussie drops against broadly stronger greenback
- FOREX -Euro on defensive, pressured by ECB stimulus expectations
The euro fell to the lowest level in seven months against the dollar on Monday amid heightened expectations that the European Central Bank will scale up its monetary easing program next month.EUR/USD hit lows of 1.0600, the weakest since April 15 and was last at 1.0620. The single currency remained under heavy selling pressure after ECB head Mario Draghi gave the clearest signal yet that the bank may unveil fresh stimulus measures at its December meeting. The ECB is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing, Draghi said on Friday.The comments came during a conference in Frankfurt and underlined the diverging monetary policy expectations between the Federal Reserve and the ECB.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, hit seven-month highs of 100.04 on Monday and was last at 99.91.
The GBP/USD is trading very heavy in Asia, last at 1.5160 day lows, with the appreciation of the USD across the board to blame, as the conviction of the Fed raising rates in December increases. The pair is extending its decline from last Friday’s against a backdrop of increasing buying interest around the US dollar. The greenback will be in the limelight today, as market participants will remain vigilant on the Fed’s close meeting, expected during the European evening. Data wise in the UK, the most relevant event will be the Financial Stability Report on Thursday and advanced flash GDP figures during the third quarter (Friday).The pair is now losing 0.14% at 1.5171 with the immediate support at 1.5100 (psychological level) ahead of 1.5097 (23.6% Fibo of 1.5023-1.5336) and then 1.5023 (low Nov.6). On the other hand, a break above 1.5305 (55- day sma) would aim for 1.5336 (high Nov.19) and finally 1.5407 (100-day sma).
- BUY GBP/USD ABOVE 1.5180 TARGET 1.5210 1.5240 SL 1.5150
- SELL GBP/USD BELOW 1.5120 TARGET 1.5100 1.5070 SL 1.5150