INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar steady in early trade, yuan in focus again
- Forex -NZD/USD slides lower as focus remains on China
- Forex -AUD/USD re-approaches 4-month lows on China worries
The dollar moved lower against the euro on Tuesday, The low yielding euro rose 0.33% against the dollar to 1.0896. Investors also remained concerned over the extent of the economic slowdown in China, following a steep selloff in Chinese stocks and a renewed devaluation in the yuan since the start of the year.Shares in China closed higher on Tuesday, after Beijing stepped up measures to support the yuan. China’s central bank guided the yuan higher for a third day, but uncertainty over Beijing’s currency policy persisted. EUR/USD was little changed at 1.0850.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.08% at 99.00.
The pound fell to fresh five-year lows against the dollar on Tuesday after data showing that U.K. industrial and manufacturing production dropped sharply in November, adding to concerns over the uneven economic recovery. GBP/USD hit lows of 1.4484, the weakest level since June 2010, down from around 1.4527 ahead of the data.The Office for National Statistics said industrial production fell 0.7% in November from the previous month, compared with forecasts for a flat reading. It was the biggest drop since January 2013. Sterling remained under heavy selling pressure amid concerns that the Bank of England will signal that rates are likely to remain on hold for longer after its policy meeting on Thursday. The pound was lower against the euro, with EUR/GBP rising to 0.39% to 0.7494 from 0.7479 earlier.
- BUY GBP/USD ABOVE 1.4530 TARGET 1.4550 1.4580 SL 1.4500
- SELL GBP/USD BELOW 1.4480 TARGET 1.4460 1.4430 SL 1.4510