22Jan
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IForex Market Trading Signals and News – 22 January 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex -NZD/USD holds steady amid oil rout concerns
  • Forex -Dollar steady against yen, euro looking to ECB
  • Forex -AUD/USD slips lower as Australia data, oil rout weigh

EUR/USD
The EUR/USD is almost unchanged on Thursday, with EUR/USD wobbling around the 1.0900 figure so far. The pair is now looking to consolidate the breakout of the 1.0900 handle ahead of the opening bell in London, bolstered by some risk-off trade coming back to the markets. In the meantime, spot navigates unaltered the 1.07-1.10 range waiting for today’s ECB meeting. Market expectations of any change of the monetary policy remain close to zero, although Draghi’s press conference could bring in some volatility, especially amidst the collapse of crude oil prices and the stagnant inflation figures in the euro region. “The recent build-up in the short-term upward momentum fizzled out with the rapid drop from the high of 1.0975 yesterday”.“It appears that EUR is still trapped within a 1.0800/1.0990 range for now”.

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. Average weekly earnings excluding bonuses, wages rose by 1.9%, compared to expectations of a 1.8% rise. This was the weakest growth since February last year.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4200 TARGET 1.4220 1.4250 SL 1.4170
  • SELL GBP/USD BELOW 1.4150 TARGET 1.4130 1.4100 SL 1.4180

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