21Jan
forex-market-hours

IForex Market Trading Signals and News – 21 January 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex -AUD/USD re-approaches 6-year lows after Australian data
  • Forex – NZD/USD falls to 4-month lows in cautious trade
  • Forex -Dollar hits 1-year lows vs. yen as risk aversion mounts

EUR/USD
The EUR/USD dipped 26 points to trade at 1.0867 after Chinese data sparked a bit of a run to safety but avoided the pound ahead of the ECB meeting on Thursday. There was a steady flow of data in the Eurozone today including inflation, PPI, German ZEW data. Overall data met expectations but forecasts had been downgraded and traders were hoping to see a bit better than expected inflation data to help the ECB get away with no additional stimulus. Meanwhile, EUR/USD rose 0.23% to trade at 1.0933. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 99.00.Germany’s consumer price inflation reached its lowest level since 2009, data from Destatis revealed Tuesday. Inflation eased to 0.3 percent in 2015 from 0.9 percent in 2014. The year-on-year rate of price increase has been declining since 2011, Destatis said.

GBP/USD
The pound touched a fresh seven-year low against the dollar on Wednesday after data showing that the U.K.unemployment rate fell unexpectedly in November but pay growth slowed, indicating that interest rates are likely to remain on hold for now. GBP/USD hit lows of 1.4126, the weakest since March 2009 before recovering slightly to trade at 1.4164, little changed for the day. The Office for National Statistics said the unemployment rate in the U.K. fell to 5.1% in the three months to November, its lowest since the three months to January 2006. Analysts had expected the jobless rate to hold steady at 5.2%.The number of people employed rose by 267,000, the third biggest increase on record.But data on pay growth was weaker the report showed, indicating that the BoE will wait for longer before hiking interest rates.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4180 TARGET 1.4200 1.4230 SL 1.4150
  • SELL GBP/USD BELOW 1.4160 TARGET 1.4140 1.4110 SL 1.4190

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