INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD edges higher on positive Australian jobs data
- Forex -NZD/USD falls to 2-month lows as sentiment wanes
- Forex -Dollar rises as Brent oil drops below $30
The EUR/USD pair remains capped below 1.09 handle, with several attempt to the upside sold-off near the last, as risk-aversion dissipates amid Asian stocks recovery. The EUR/USD pair trades modestly flat at 1.0878, failing another attempt to conquer 1.09 handle. The main currency pair continues to consolidate the overnight recovery below 1.0900 levels and now awaits fresh impetus from the European open, to confirm further upside. The gains in the EUR/USD pair remains capped on the back of healthy recovery seen in the Asian equities, with the Chinese indices turning in the green zone and the Nikkei pared losses at close. Moreover, the minor pullback in oil prices also bettered the risk conditions a bit, weighing negatively on the major.Markets now await the second-tier in the German WPI ahead of the European open, while the US jobless claims and Fed’s Bullard’s speech will be closely eyed in the NY session.
The GBP/USD pair sold-off yen another attempt towards hourly 50-SMA placed at 1.4432 and drifted a tad lower as traders remain on the backfoot ahead of the BOE’s ‘Super Thursday’. The GBP/USD pair trades almost unchanged at 1.4411, retreating quickly from fresh session highs posted at 1.4424 few minutes ago. The cable surrenders gains and once again pushes towards 1.44 handle as the ongoing weakness in the European stocks curbs investors’ appetite for riskier currencies such as the GBP. While the cable remains supported on the back of a renewed bout selling interest seen around the greenback against its six major rivals. The US dollar index now drops to fresh session lows of 99.82, down -0.10% versus a 0.16% rise seen earlier today.Moreover, markets refrain from placing big bets on the GBP/USD ahead of the BOE rate decision and minutes due to be published later this session. The BOE policy makers are expected to vote 8-1 in favour of keeping rate unadjusted at record low of 0.50% as also the asset purchases program unchanged.
- BUY GBP/USD ABOVE 1.4430 TARGET 1.4450 1.4480 SL 1.4000
- SELL GBP/USD BELOW 1.4400 TARGET 1.4380 1.4350 SL 1.4470