INTERNATIONAL CURRENCY BUZZ :
- Forex -NZD/USD slips lower as China concerns still weigh
- Forex -AUD/USD moves higher, recovers from Chinese data
- Forex -Yen remains stronger against dollar, euro
The euro extended early losses against the dollar on Tuesday, falling to the day’s lows after data showing that the annual rate of inflation in the euro zone rose less than expected last month.EUR/USD hit lows of 1.0771, the weakest since December 3, down from around 1.0775 ahead of the data.The single currency fell to fresh eight-month lows against the yen, with EUR/JPY falling 1.02% to 128.08.The euro zone’s statistical bureau Eurostat reported that the annual rate of inflation in the region rose just 0.2% in December, matching November’s reading and falling short of forecasts for an increase of 0.3%. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% to 99.27, boosted by the weaker euro.
The pound was trading close to eight month lows against the stronger dollar on Tuesday shrugging off data showing that activity in the U.K. construction sector rebounded in December. GBP/USD was last at 1.4687, off 0.19% for the day and not far from the eight-month low of 1.4662 set on Monday.Sterling remained weaker despite data showing that construction sector activity in the U.K. rebounded last month after slumping to a seven month low in November.The Markit construction purchasing managers’ index rose to 57.8 from November’s 55.3 and ahead of forecasts for a reading of 56.0.“The latest survey indicated a strong degree of optimism about the outlook for 2016, with firms mainly citing a strong pipeline of commercial development projects and new housing starts,” Tim Moore, senior economist at Markit said.
- BUY GBP/USD ABOVE 1.4700 TARGET 1.4720 1.4750 SL 1.4670
- SELL GBP/USD BELOW 1.4670 TARGET 1.4650 1.4620 SL 1.4700