INTERNATIONAL CURRENCY BUZZ :
- Forex – NZD/USD edges higher but gains capped
- Forex – Dollar slips against euro, yen, commodity currencies weaker
- Forex – AUD/USD drops after Chinese trade data
The dollar slid lower against the euro on Tuesday, but remained broadly stronger against the commodity linked currencies as the latest trade data out of China added to fears over slowing growth.Data on Tuesday showing that Chinese exports fell for the fifth consecutive month added to fears over a slowdown in the world’s second-largest economy.Exports fell 6.8% on a year-over-year basis in November as weak global demand continued to weigh. Imports were also down, falling 8.7%.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.18% to 98.55. Demand for the dollar continued to be underpinned by expectations that the Federal Reserve is on track to raise interest rates for the first time since 2006 at its upcoming meeting on December 15-16.
The pound fell to session lows against the dollar on Tuesday after data showing that U.K. manufacturing output fell more than expected in October, dampening the outlook for fourth quarter growth.GBP/USD hit lows of 1.5004, down from around 1.5012 ahead of the data. The Office for National Statistics said manufacturing output fell 0.4% in October, compared to forecasts for a more modest decline of 0.1%, after rising 0.9% in September. Manufacturing output fell 0.1% from a year earlier, against expectations for a gain of 0.1%. Industrial output rose 0.1% on the month, in line with forecasts and was up 1.7% from a year earlier, beating forecasts for a gain of 1.2%.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.10% to 98.62.
- BUY GBP/USD ABOVE 1.5040TARGET 1.5060 15090 SL 1.5010
- SELL GBP/USD BELOW 1.4990 TARGET 1.4970 1.4940 SL 1.5020