INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen pares back gains as oil prices edge higher
- Forex – Kiwi boosted by jobs data, Aussie pushes higher
- Forex – Yen and euro stand tall, oil slide brings focus back to global woes
The single currency has now recovered the smile,sending EUR/USD back to the 1.0930 area after testing lows near 1.0900. The current recovery of crude oil prices seem to be lending some support to the pair, which has managed to bounce off session lows in the boundaries of 1.0900 the figure.Mixed results from January’s Services PMI in the euro area have passed largely unnoticed, while EMU’s Retail Sales have expanded 0.3% MoM during December, matching estimates. Ahead in the session, market consensus expects the ADP report to come in just below the 200K threshold and the ISM Non- manufacturing a tad lower to 55.1 for the last month. The pair is now advancing 0.10% at 1.0925 facing the next resistance at 1.0969 (high Jan.28) followed by 1.1000 (psychological level) and then 1.1053 (200-day sma). On the other hand, a break below 1.0777 (post-ECB low Jan.21) would open the door to 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709
The pound rose to three week highs on Wednesday after data showing that the dominant U.K. service sector posted another solid rise in output in January, getting 2016 off to a strong start. GBP/USD hit 1.4462, the most since January 13, up from around 1.4430 ahead of the data.The Markit services purchasing managers’ index ticked up to a five month high of 55.6 from Decembers 55.5. Analysts had expected a slight downtick to 55.3.New business rose at the sharpest rate since last July, the report said, while service providers raised employment at the fastest pace since last October.But output growth was weaker than the trend rates achieved in 2013, 2014 and 2015 and the longer-term outlook for business activity hit a three-year low.“The three PMI surveys for January collectively point to a slight upturn in the rate of economic growth, consistent with GDP rising at a quarterly rate of 0.6% in the first quarter, up from 0.5% in the fourth quarter, if current levels are sustained,” Chris Williamson, chief economist at Markit said.
- BUY GBP/USD ABOVE 1.4480 TARGET 1.4500 1.4530 SL 1.4450
- SELL GBP/USD BELOW 1.4220 TARGET 1.4200 1.4170 SL 1.4250