INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar holds steady vs. euro, yen ahead of U.S. GDP report
- Forex -Rupiah, Taiwan dollar and ringgit edge higher
- Forex -Dollar falls as euro rises after Spanish election
The dollar was steady against the euro and the yen on Tuesday, as trading became more quiet ahead of the Christmas Holiday and as investors awaited the release of U.S. economic growth data due later in the day.EUR/USD was little changed at 1.0912. The dollar remained supported after the Federal Reserve hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move. It was the first rise in U.S. interest rates in nearly 10 years.Market participants were eyeing the release of a final report on U.S. third-quarter growth for further confirmation of the strength of the economy. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.44.
The pound edged higher against the U.S. dollar on Tuesday, even after data showed that public sector net borrowing rose more-than-expected last month as demand for the greenback slightly weakened ahead of a U.S. economic growth report due later in the day. Trading volumes were expected to remain limited ahead of the Christmas Holiday. GBP/USD hit 1.4930 during European morning trade, the session high; the pair subsequently consolidated at 1.4893, easing up 0.09%.Cable was likely to find support at 1.4861, the low of December 17 and resistance at 1.5003, the high of December 17. The U.K. Office for National Statistics reported that public sector net borrowing rose to £13.56 billion in November from £6.75 billion in October, whose figure was revised from a previously estimated £7.47 billion.Analysts had expected public sector net borrowing to rise to £11.00 billion last month.
- BUY GBP/USD ABOVE 1.4900 TARGET 1.4920 1.4950 SL 1.4870
- SELL GBP/USD BELOW 1.4870 TARGET 1.4850 1.4820 SL 1.4900