INTERNATIONAL CURRENCY BUZZ :
- FOREX -Dollar moves lower but remains supported
- FOREX -Dollar softens, commodity currencies benefit from oil rally
- FOREX -Dollar rises to fresh 8-month peak ahead of U.S. data
The EUR/USD pair trades 0.24% lower at 1.0616, hovering close to fresh session lows struck at 1.0607 in last minutes. The selling pressure around EUR/USD intensified on the break of the hourly 50-SMA support at 1.0642 and the major dropped sharply towards 1.06 levels, with multi month lows in sight. The sharp sell-off seen in the EUR/USD pair, can be mainly attributed to the re-emergence of appetite for riskier, driving European stocks through the roof and boosting the risk-currency – the US dollar. The solid comeback staged by the greenback across the fx board, also halted the EUR/USD recovery and triggered renewed weakness. While the shared currency remains under pressure on growing monetary policy divergence between the Fed and ECB in the run up to the ECB Dec 3 showdown. Looking ahead, focus remains on the US macro releases, including the durable goods and Core PCE index, amid a data-empty EUR calendar.
The GBP/USD pair loses 0.09% and trades near fresh session lows of 1.5064, heading towards two- week lows reached at 1.5051 on Tuesday. The major failed to sustain above 1.51 handle and retreated thereafter, breaking below most MA on hourly sticks. The renewed bout of selling interest that caught GBP/USD was mainly due to the recent strength in the US dollar against its major peers amid rising risk-on trades, with the USD index crossing 100 mark once again and stands at fresh seven-month tops. Meanwhile, markets now await the UK’s Autumn Forecasts statement for further cues on the fiscal outlook of the British economy. The pound may come under renewed selling pressure on the statement release as the Treasury is expected to have missed its 2015-16 fiscal targets. The pair has an immediate resistance at 1.5111 (1h 50-SMA), above which 1.5159 (Nov 24 High) would be tested. On the flip side, support is seen at 1.5051 (Nov 24 Low) below which it could extend losses to 1.5038 (Nov 9 Low).
- BUY GBP/USD ABOVE 1.5090 TARGET 1.5110 1.5140 SL 1.5060
- SELL GBP/USD BELOW 1.5030 TARGET 1.5010 1.4980 SL 1.5060