INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD rises to 2-week highs on Australian inflation data
- Forex -NZD/USD slides lower ahead of Fed, RBNZ statements
- Forex – Dollar treads water ahead of Fed statement
EUR/USD, is showing marginal movement on Wednesday, as the pair trades at 1.0870 in the European session. In economic news, German Consumer Climate posted a strong reading of 9.4 points, within expectations. In the US, the Federal Reserve will release a policy statement and set the benchmark interest rate for January.Fresh offers came-in after the pair failed to sustain above the hourly 200-MA seen at 1.0873 levels. The pair had spiked to 1.0883 after the European stocks dropped around 0.80% in early trading. However, equities recovered losses and weighed over the common currency. No first tier data is due for release in the Eurozone. Hence, the pair remains at the mercy of the action in the equity markets as we head towards the FOMC rate decision. “Draghi’s dovish policy signal should understandably cap EUR into the ECB’s Mar 10 policy meeting, the pair unlikely to make a serious dent at 1.10 if at all in coming weeks”.
The GBP/USD pair trades -0.31% lower at fresh session lows of 1.4306, having faced strong offers near 1.4350 region. The major reverses a part of yesterday’s rally and remains vulnerable as the slide in the oil prices refuelling risk-off trades across the financial markets and almost killed the demand for risk currencies such as the GBP. The cable remains little affected by the expectations of an upbeat GDP print due tomorrow and keeps the offered tone intact as long as oil price action continues to dominate markets. On Tuesday, GBP/UD rallied to weekly highs near 1.4370 and completely ignored the dovish comments from BOE Governor Carney at his testimony in London. Carney noted that conditions are not right for a rate hike, while he also added that BOE could cut rates if necessary.Attention now remains on the Fed decision due later today for further momentum on the major.
- BUY GBP/USD ABOVE 1.4340 TARGET 1.4360 1.4390 SL 1.4310
- SELL GBP/USD BELOW 1.4380 TARGET 1.4360 1.4330 SL 1.4410