INTERNATIONAL CURRENCY BUZZ :
- Forex – NZD/USD higher after N.Z. business confidence data
- Forex – Aussie holds steady against stronger greenback
- Forex – Euro off to calm start in event-laden week
The EUR/USD pair trades modestly flat at 1.0589, recovering from session lows struck at 1.0571 in early Asia. The major attempts an anaemic recovery in anticipation of an uptick in retail sales and consumer prices in the Euro zone’s economic powerhouse, which may offer the much-need respite to the EUR bulls.Germany’s CPI growth is expected to show a 0.1% advance m/m in Nov, after a flat result reported in Oct, while the Oct retail sales are predicted to show a 0.3% rise on a monthly basis, following the flat result in September. However, the recovery is expected to remain short-lived as the underlying monetary policy divergence between both continents remain in focus heading into this week’s ECB meeting.After a holiday-shortened last week, Monday’s trading calendar offers significant economic news from Germany and the US. However, the macro data may have limited impact as all eyes remain on the ECB decision.
The pound slipped to a seven-month low against the U.S. dollar on Monday, after data showed that U.K. net lending to individuals was in line with market expectations last month, as demand for the greenback remained supported by hopes for a December rate hike in the U.S. GBP/USD hit 1.5002 during European morning trade, the pair’s lowest since April 23; the pair subsequently consolidated at 1.5013, down 0.10%. Cable was likely to find support at 1.4957, the low of April 2 and resistance at 1.5109, Friday’s high. Meanwhile, the dollar remained supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.Sterling was steady against the euro, with EUR/ GBP at 0.7047. Earlier Monday, data showed that German retail sales fell 0.4% in October, compared to expectations for a 0.4% rise and after a flat reading the previous month.
- BUY GBP/USD ABOVE 1.5050 TARGET 1.5070 1.5100 SL 1.5020
- SELL GBP/USD BELOW 1.5000 TARGET 1.4980 1.4950 SL 1.5030