INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD edges higher after mixed Australian data
- Forex – NZD/USD slips lower ahead of RBNZ rate decision
- Forex – Commodity currencies out in the cold, others subdued
The euro edged higher against the dollar on Wednesday, while the commodity linked currencies firmed up after steep declines in the previous two sessions on the back of a selloff in oil prices.EUR/USD was up 0.25% to 1.0918, recovering from Tuesday’s lows of 1.0829. Trade in the euro remained subdued after last Thursday’s rally when the latest round of European Central Bank easing measures fell short of market expectations. The commodity related currencies, including the Canadian dollar and the Norwegian crown, steadied as a selloff in commodities eased after data showing that Chinese inflation picked up last month. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% to 98.16.
The GBP/USD pair initially fell during the day here on Tuesday, but found enough support below the 1.50 level to turn things back around and form a relatively positive looking hammer. The question now is whether or not we can bounce from here. At this point in time it’s very unlikely that the markets are ready go higher for any significant move, so we look at rallies as potential selling opportunities. We also look at a break down below the bottom of the candle for the day on Tuesday as a selling opportunity. The dollar remained broadly supported after Friday’s strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.35% at 98.07.
- BUY GBP/USD ABOVE 1.5100 TARGET 1.5120 1.5150 SL 1.5070
- SELL GBP/USD BELOW 1.5060 TARGET 1.5040 1.5010 SL 1.5090