INTERNATIONAL CURRENCY BUZZ :
- Forex -Euro rides out Spanish election result, yuan steadies
- Forex -Dollar adrift in a sea of central bank uncertainty
- Forex -Dollar steady in subdued trade ahead of holidays
The dollar edged lower against the eur on Monday, as investors continued to digest the Federal Reserve’s latest policy move and as trading volumes were expected to remain thin ahead of the Christmas Holiday.EUR/USD eased up 0.09% to 1.0875. The U.S. dollar weakened on Friday, one day after rising to a two-week high as markets continued to digest the Fed’s decision to raise interest rates for the first time in nearly a decade. The Fed hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move.The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 98.65.
The pound was almost unchanged against the U.S. dollar on Monday, hovering close to an eight-month low as sentiment on the greenback remained supported by the Federal Reserve’s most recent policy decision.Trading volumes were expected to remain limited ahead of the Christmas Holiday.GBP/USD hit 1.4892 during European morning trade, the session low; the pair subsequently consolidated at 1.4899.Cable was likely to find support at 1.4861, the low of December 17 and an eight-month low and resistance at 1.5003, the high of December 17.The dollar rallied againt the pound last week after the Fed hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move.Commenting on the decision, Fed Chair Janet Yellen said the FOMC will not be mechanical in its approach to normalize monetary policy and that future rate hikes would be gradual and data dependent.
- BUY GBP/USD ABOVE 1.4920 TARGET 1.4940 1.4970 SL 1.4890
- SELL GBP/USD BELOW 1.4900 TARGET 1.4880 1.4850 SL 1.4930