INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar little changed as trading volumes remain light
- Forex -Swedish crown soars, yuan hits 4-1/2-month low in offshore trade
- Forex -Yen gets boost from souring risk sentiment, crude slide hits loonie
The EUR/USD pair rises 0.08% to 1.0976, retreating from daily highs reached at 1.0983 levels. The main currency pair maintains the bid tone in Asia and fights hard to break through 1.10 barrier, with the broad based US dollar weakness collaborating to the upside in the pair. The USD index trades -0.08% lower at 97.92.However, further upmoves lack momentum in light of no major economic drivers ahead, as the macro calendar is expected to remain empty until the NY session. Moreover, thin trading and irregular volatility also restricts further upside in EUR/USD amid holiday-thinned markets as we progress towards the New Year.
The pound held steady against the U.S. dollar on Tuesday, as trading volumes remained thin after Christmas and ahead of the New Year.Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves. GBP/USD hit 1.4914 during European morning trade, the session high; the pair subsequently consolidated at 1.4889.Cable was likely to find support at 1.4815, the low of December 23 and resistance at 1.4947, the high of December 25.Market participants were eyeing a report on U.S. consumer confidence due later in the day after mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year. With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases.
- BUY GBP/USD ABOVE 1.4910TARGET 1.4930 1.4960 SL 1.4880
- SELL GBP/USD BELOW 1.4860 TARGET 1.4840 1.4810 SL 1.4890