INTERNATIONAL CURRENCY BUZZ :
- Forex -NZD/USD moves higher but gains capped
- Forex -Dollar edges down but close to recent highs; Fed, BOJ in focus
- Forex -AUD/USD edges up despite disappointing NAB report
The EUR/USD pair trades 0.20% higher at fresh session highs of 1.0819, heading gradually towards hourly 50-SMA at 1.0841. The main currency extends its consolidative mode into early Europe and hovers near session tops, gathering pace for further upside towards 1.0850 region. With the Asian equities paring gains, the risk-on moods appear to have waned a bit and hence, lift the demand for the funding currency euro. Moreover, the gains in the EUR/USD pair can be also partly attributed to a broadly lower USD as well as to the extension of the post-ECB correction. Last week, Attention now remains on the German IFO surveys to provide fresh incentives on the EUR moves, while ECB Chief Draghi’s speech due later in the NY session will be closely eyed.
The GBP/USD pair trades almost unchanged at 1.4267, quickly reversing a dip to lows at 1.4235, where 5-DMA coincides. The pound manages to recover ground somewhat against its American counterpart and now looks to reclaim 1.43 handle as risk-off moods appear to ease amid stabilizing European stocks. While the oil prices also trim losses and added to the renewed optimism in the markets.Moreover, broad based US dollar weakness continues to keep the downside restricted in the GBP/USD pair. While the recovery looks fragile on the back of strengthening EUR/GBP cross, which hovers near 0.76 handle, recording a 0.30% gain on the day.Next on tap, BOE Carney’s speech due tomorrow will take centrestage before the crucial FOMC statement due to be published on Wednesday.
- BUY GBP/USD ABOVE 1.4310 TARGET 1.4330 1.4360 SL 1.4280
- SELL GBP/USD BELOW 1.4235 TARGET 1.4215 1.4185 SL 1.4265