INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD drops after U.S. rate hike
- Forex -Kiwi lower against broadly stronger greenback
- Forex -Dollar near 2-week highs after Fed hikes U.S. interest rates
The EUR/USD pair fell down to 1.0831 at the beginning of the day, with the greenback extending the rally triggered by the FED late Thursday, when the US Central Bank finally announce a 25bp rate rise, writing a new chapter in the history of monetary policy. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.50% at 98.90, the highest level since December 3.The Greenback remains in demand after the Fed Dot Chart released yesterday hinted at 4 rate hikes in 2016. This surprised markets as the Fed was widely expected to indicate a slow path of tightening. Consequently, the EUR/USD failed to extend the minor recovery seen in early Europe and fell below 1.0852 levels.
The pound trimmed losses against the U.S. dollar on Thursday, after the release of strong U.K. retail sales data, although the Federal Reserve’s decision to raise interest rates on Wednesday continued to support the greenback.GBP/USD eased off 1.4920, the pair’s lowest since December 3, to hit 1.4966 during European morning trade, still down 0.23%. Cable was likely to find support at 1.4902, the low of December 3 and resistance at 1.5102, Wednesday’s high.The U.K. Office for National Statistics reported that retail sales increased by 1.7% last month, blowing past forecasts for a gain of 0.5%. Retail sales in October fell by 0.5%, whose figure was revised from a previously reported decline of 0.6%. Year-on-year, retail sales rose at a rate of 5.0% in November, easily surpassing expectations for a 3.0% gain, after rising at a rate of 4.2% a month earlier.
- BUY GBP/USD ABOVE 1.4970 TARGET 1.4990 1.5020 SL 1.4940
- SELL GBP/USD BELOW 1.4920 TARGET 1.4900 1.4870 SL 1.4950