INTERNATIONAL CURRENCY BUZZ :
- Forex – Dollar falls from highs as U.S., euro zone data weigh
- Forex – Dollar recovers from downbeat data, edges back up
- Forex – Euro fragile before ECB meeting, lends support to dollar
The euro moved lower against the dollar and the other major currencies on Wednesday after weak euro zone inflation data added to pressure on the European Central Bank to step up stimulus measures.EUR/USD was down 0.45% to 1.0585, re-approaching Monday’s seven-month trough of 1.0552, from around 1.0622 ahead of the data.Eurostat said the annual rate of inflation in the euro zone rose just 0.1% in November, below forecasts of 0.2% and unchanged from the previous month.Core inflation, which excludes energy, food and tobacco, rose just 0.9%, slowing from 1.1% in October, indicating that inflationary pressures in the region are weakening. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.26% to 100.14, not far from Monday’s highs of 100.36, the most since mid-April.
The GBP/USD pair trades lower this Wednesday, with the pair plunging to a fresh daily low of 1.5029 after the release of the UK Construction PMI, down to 55.3 in November against previous 58.8 and expectations of 58.2. The negative surprise adds to recent concerns over the slowing pace of economic growth in the UK, which will ultimate result in a delay in a rate hike.Later today, the US will release the ADP private survey, and some minor employment figures for November, which will be quite relevant ahead of the Nonfarm Payroll report to be released this Friday. The U.S. dollar index, which measures the greenback’s strength against a trade weighted basket of six major currencies, was at 99.95, not far from Monday’s highs of 100.36, the most since mid-April. The weak data was seen as unlikely to prompt the Federal Reserve to delay hiking rates next month, but sparked fears that further monetary tightening could hamper the U.S. economic recovery.
- BUY GBP/USD ABOVE 1.5070 TARGET 1.5090 1.5120 SL 1.5040
- SELL GBP/USD BELOW 1.5030 TARGET 1.5010 1.4980 SL 1.5060