INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar edges higher vs. rivals but gains limited
- Forex -Euro remains weaker, yen slips lower
- Forex -Yen eases as yuan stabilizes but China fears persist
The euro was lower against the dollar on Monday after Friday’s strong U.S. employment report for December and the yen gave up overnight gains, but investors remained wary amid ongoing turmoil in Chinese financial markets.EUR/USD slid 0.31% to 1.0892, still holding above Friday’s lows of 1.0801.The U.S. dollar index, which measures the green- back’s strength against a trade-weighted basket of six major currencies, was up 0.19% to 98.64. The unemployment rate held steady at a seven-and-a-half year low of 5% in December. The report bolstered expectations that the Federal Reserve could raise interest rates at a faster pace this year. Higher U.S. interest rates would make the dollar more attractive to yield-seeking investors.
The GBP/USD pair trades 0.29% at 1.4566, easing-off session highs reached at 1.4580 levels. Having failed several attempts to take out stiff resistance near 1.4580 region, the cable retreats as the European stocks come slightly under pressure, thus, reducing the demand for risk/ high-yielding currencies such as the GBP. However, the GBP/USD pair finds support from receding US dollar against its major competitor. The USD index pares gains to trade 0.14% higher at 98.60. While a generalized strength seen across the higher yielding currencies such as the AUD, NZD and the CAD, further helps keep the recovery in GBP/USD intact. The U.S. dollar index, which measures the greenback’s strength against a trade weighted basket of six major currencies, was up 0.09% at 98.55.
- BUY GBP/USD ABOVE 1.4570 TARGET 1.4590 1.4620 SL 1.4540
- SELL GBP/USD BELOW 1.4530 TARGET 1.4510 1.4480 SL 1.4560