INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar steady against rivals after Fed statement
- Forex -Sterling hits day’s highs on U.K. GDP report
- Forex – Steadier oil helps Aussie, kiwi after Fed statement
EUR/USD, is steady on Thursday, as the pair trades at the 1.09 line in the European session. In economic news, currency markets did not display much reaction to the Federal Reserve, which maintained interest rate levels and issued a cautious policy statement. Later in the day, Germany will publish Preliminary CPI, and the US releases Core Durable Goods and Unemployment Claims. On Friday, there are key events, Eurozone CPI and US Advance GDP. The pair kept the composure after January’s data in the euro area showed Industrial Confidence dropped to 3.2, Business Climate fell to 0.29, Service Sentiment has come in at 11.6 and Economic Sentiment printed 105.0, all of them below expectations. On a more optimistic side, Consumer Confidence matched estimates at -6.3.In the meantime, spot has managed to clinch highs near 1.0930, albeit losing some pips afterwards, all backed by a softer tone in the greenback.
The pound rose to the day’s highs on Thursday after figures showing that the U.K. economy grew in line with expectations in the fourth quarter, but the annual rate of growth slowed to the weakest in three years. GBP/USD rose 0.63% to 1.4324 from around 1.4253 ahead of the report. The Office for National Statistics said fourth quarter gross domestic product grew 0.5%, matching forecasts after growth of 0.4% in the three months to September.The service sector, which accounts for around 80% of GDP, grew by 0.7% in the last quarter, but the production sector shrank by 0.2%, with manufacturing output flat. Construction output fell 0.1%, the ONS said.The U.K. economy grew at an annual rate of 1.9% in the three months to December, slowing from 2.1% in the third quarter and the smallest increase since early 2013.
- BUY GBP/USD ABOVE 1.4340 TARGET 1.4360 1.4390 SL 1.4310
- SELL GBP/USD BELOW 1.4270 TARGET 1.4250 1.4220 SL 1.4300