INTERNATIONAL CURRENCY BUZZ :
- FOREX -NZD/USD edges higher but upside seen limited
- FOREX -AUD/USD rises amid profit-taking
- FOREX -Dollar slips from 8-month peak, sterling awaits BoE’s Carney
The euro edged higher against the U.S. dollar on Tuesday, supported by strong German business climate data, although gains were capped by expectations for further stimulus by the European Central Bank and for a U.S. rate hike before the year-end.EUR/USD hit 1.0670 during European morning trade, the session high; the pair subsequently consolidated at 1.0646, easing up 0.08%.The pair was likely to find support at 1.0591, Monday’s low and a seven-month low and resistance at 1.0744, Friday’s high.The euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2.But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank 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.
The GBP/USD dipped 31 points to trade at 1.5156 after the US dollar rallied ahead of the holiday weekend. Speculation that the Fed will lift interest rates for the first time in nearly a decade this year has intensified since the release of strong US jobs data earlier this month. Comments from Fed officials have boosted that view. The latest Fed speak has been pretty much uniform – expect a Fed rate hike in December. Recent comments from Vice Chair Stanley Fischer, Atlanta Fed President Dennis Lockhart, and San Francisco Fed President John Williams have said that there is a strong case for the Fed to hike interest rates.Sterling edged down against both the dollar and euro on Monday, with investors eyeing testimony from the heads of the British finance ministry and Bank of England (BoE) later in the week for direction.The pair has failed to break above the area of 1.5160 on a sustainable basis in early trade, sparking the current decline to lows near 1.5120 ahead of the UK’s Inflation Report Hearings and the US GDP during the third quarter.
- BUY GBP/USD ABOVE 1.5140 TARGET 1.5120 1.5090 SL 1.5170
- SELL GBP/USD BELOW 1.5100 TARGET 1.5080 1.5050 SL 1.5130