INTERNATIONAL CURRENCY BUZZ :
- FOREX -NZD/USD edges higher but gains limited
- FOREX -Dollar back on bullish footing on upbeat data, shaky euro
- FOREX -AUD/USD drops after downbeat Australian data
The euro slid against the dollar on Thursday, re-approaching seven-month lows amid heightened expectations that the European Central Bank will announce further monetary stimulus measures at its upcoming meeting next week.EUR/USD eased 0.13% to 1.0610, nearing Wednesday’s lows of 1.0565, the weakest level since April 14.The euro remained under pressure amid heightened expectations that the ECB will implement fresh measures to combat slowing growth and inflation in the euro area.Late last week ECB head Mario Draghi gave the clearest signal yet that the bank will unleash new easing measures, saying the back is ready to act quickly to boost inflation in the region. The euro fell to seven month lows against the yen overnight, with EUR/JPY hitting 129.89, be- fore edging back up to 130.14.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 99.9, not far from Wednesday’s peaks of 100.21.
The GBP/USD pair trades -0.24% lower at 1.5091, having posted fresh session lows at 1.5087 last minutes. The US dollar regained lost momentum and resumed its ongoing bullish run against its major competitors, sending GBP/USD further below 1.51 handle. The pound turned back in the red after the UK’s Autumn forecasts-led robust recovery, as the recent dovish comments from BOE officials continue to haunt investors’ minds while the Fed is moving towards the first rate hike in almost a decade next month. In the day ahead, GBP/USD is likely to trade lack-lustre both UK and European markets aren’t expected to provide much in terms of fundamental drivers, while the US starts the Thanksgiving holiday. While attention now turns to the UK GDP figures due tomorrow. The pair has an immediate resistance at 1.5123 (5-DMA), above which 1.5174 (10-DMA) 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 1.5050 TARGET 1.5020 1.4990 SL 1.5080