INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar steady after euro jump loses steam, Aussie trims gains
- Forex -Onshore yuan rates hit 4-yr low, dollar and euro steadier
- Forex -Dollar little changed vs. rivals, U.S. data on tap
EUR/USD posted modest gains on Friday erasing some of its losses from the previous session, as currency traders continued to await a likely interest rate hike by the Federal Reserve at its two-day meeting next week.The currency pair traded between 1.0927 and 1.1031 before settling at 1.0994, up 0.0053 or 0.49% on the session. After surging by more than 3% in last Thursday’s session, EUR/USD has been relatively flat in the six subsequent trading days, moving only percentage points higher. Earlier this week, the euro jumped to one-month highs against the dollar as the aftershocks of a surprising move by the European Central Bank continued to be felt. EUR/USD likely gained support at 1.0549, the low from Dec. 2 and was met with resistance at 1.1041, the high from Dec. 9.
The pound held steady against the U.S. dollar on Friday, as the Bank of England’s monetary policy decision on Thursday continued to weigh mildly on sterling, while investors remained cautious with the greenback ahead of a string of U.S. data due later in the day. GBP/USD hit 1.5132 during European morning trade, the session low; the pair subsequently consolidated at 1.5153.Cable was likely to find support at 1.5075, the low of December 4 and resistance at 1.5240, the high of November 17.Sterling weakened after dovish Bank of England meeting minutes on Thursday indicated that interest rates are likely to remain on hold at record lows for longer. The Monetary Policy Committee voted eight-to- one to keep rates on hold at 0.5%. Ian McCafferty, one of four external members on the nine-person MPC, voted to increase rates to 0.75%.the economy.
- BUY GBP/USD ABOVE 1.5230 TARGET 1.5250 1.5270 SL 1.5200
- SELL GBP/USD BELOW 1.5200 TARGET 1.5180 1.5150 SL 1.5230