INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD rises after Chinese data, gains seen limited
- Forex – NZD/USD edges higher after China GDP
- Forex -Dollar higher against safe haven yen after China GDP data
The euro remained slightly lower against the dollar on Tuesday after a report showing that German economic sentiment deteriorated this month, knocked by recent turmoil in global financial markets. EUR/USD was last at 1.0869, off 0.21% for the day from around 1.0873 earlier. The ZEW institute said its index of German economic sentiment fell from 16.1 in December to 10.2 in January, as slowing growth in China and other major world economies dimmed the outlook for the euro area’s largest economy. This was still higher than analysts forecast for a reading of 8.2. The ZEW index of current conditions rose to 59.7 from 55.0 in December, the highest level since September. A separate report confirmed that the annual rate of inflation in the euro area came in at 0.2% in December, in line with forecasts.On a month-over-month basis consumer prices were flat.
The pound hit the day’s highs against the dollar on Tuesday after data showing that the annual rate of inflation in the U.K. rose at the fastest rate in almost a year in December. GBP/USD rose to 1.4340 from around 1.4317 ahead of the report.The U.K. consumer price index rose 0.1% in December from a month earlier, matching forecasts, the Office for National Statistics said. The annual rate of inflation rose 0.2%, ahead of forecasts of 0.1% and the highest since January 2015. Transport costs, particularly air fares, and to a lesser extent motor fuels, were the main contributors to the rise, the ONS said. The data comes at the end of a year which saw consumer prices inflation hover close to zero, prompting investors to push back expectations on the timing of a rate hike by the Bank of England.Investors were looking to the speech for any indications on the timing of a possible rate hike.Sterling also touched session highs against the euro, with EUR/GBP falling to 0.7584 from 0.7599 earlier.
- BUY GBP/USD ABOVE 1.4350 TARGET 1.4370 1.4400 SL 1.4320
- SELL GBP/USD BELOW 1.4280 TARGET 1.4260 1.4230 SL 1.4310