INTERNATIONAL CURRENCY BUZZ :
- Forex -NZD/USD higher despite RBNZ rate cut
- Forex -Swiss franc steady after SNB keeps rates on hold at 0.75%
- Forex -AUD/USD rallies on strong Australian jobs data
The dollar pushed higher against the euro and the yen on Thursday after losses in the previous sessions as investors turned their attention to next week’s Federal Reserve meeting amid expectations for an imminent rate hike.EUR/USD was down 0.39% to 1.0908, off Wednesday’s five week highs of 1.1042.The euro had continued to strengthen in the wake of last Thursday’s rally after the latest round of easing announced by the European Central Bank fell well short of market expectations.On Wednesday, ECB Governing Council member Ewald Nowotny said market expectations for additional stimulus measures had been too high and that investors should have paid more attention to economic fundamentals.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.38% to 97.71.
The pound was almost unchanged at three-week highs against the U.S. dollar on Thursday, even after data showed that he U.K. trade deficit widened much more than expected in October, as investors awaited the Bank of England’s policy decision later in the day.GBP/USD hit 1.5196 during European morning trade, the pair’s highest since November 20; the pair subsequently consolidated at 1.5178.Cable was likely to find support at 1.5075, the low of December 4 and resistance at 1.5248, the high of November 18. The U.K. Office for National Statistics reported that the country’s trade deficit widened to £11.83 billion in October from £8.8 billion the previous month. Economists had expected the trade deficit to widen to £9.7 billion in October. The U.S. dollar rallied to 11-/12 year highs against other major currencies earlier in the week after Friday’s strong U.S. employment data added to expectations that the Fed will hike interest rates for the first time since 2006.
- BUY GBP/USD ABOVE 1.5190 TARGET 1.5170 1.5140 SL 1.5160
- SELL GBP/USD BELOW 1.5160 TARGET 1.5140 1.5110 SL 1.5190