INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar holds steady vs. euro, yen in holiday-thinned trade
- Forex -GBP/USD almost unchanged, near 8-month low
- Forex -Dollar edges higher vs. rivals in quiet trade
The dollar held steady against the euro on Wednesday, as upbeat U.S. data released the day before continued to support but trading volumes remained thin ahead of the New Year holiday. 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. EUR/USD was steady at 1.0930.The dollar strengthened after the Conference Board reported on Tuesday that its consumer confidence index rose to 96.5 in December from 92.6 in November, whose figure was revised from a previously estimated 90.4.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.27.
The GBP/USD pair trades 0.12% higher at fresh session highs of 1.4839, having found renewed strength around 1.4815 levels. The cable manages to recover lost ground somewhat and extends its recovery mode above 1.48 handle on the back of risk-on sentiment persisting in Asia spurred by higher global equities. Moreover, mixed US dollar trading against its major competitors also lends support to the much-need pullback in the cable. Meanwhile, the pound is likely to remain pressured heading into the New Year on divergent central banks’ monetary policy outlooks espeially after the surprisingly dovish comments from BOE policy maker Martin Weale last week. Mr. Weale, a BOE hawk, said that the BOE shouldn’t raise rates in 2016 as wage pressures remain subdued.
- BUY GBP/USD ABOVE 1.4840 TARGET 1.4860 1.4890 SL 1.4810
- SELL GBP/USD BELOW 1.4780 TARGET 1.4760 1.4730 SL 1.4810