INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar edges higher vs. rivals before Yellen remarks
- Forex -Aussie rises, kiwi little changed with Yellen speech on tap
- Forex -Pound pushes higher, gains capped after U.K. data
The EUR bears retain control and fade any recovery attempt made by EUR/USD in the mid-European session, now pushing the prices below the mid-point of 1.12 handle.Currently, EUR/USD trades -0.42% lower at fresh session lows of 1.1244, shedding nearly 60 pips so far this Wednesday. The offered tone around the EUR/USD pair keeps growing bigger, as the European stocks-recovery picks-up pace backed by a solid rebound in the banking sector stocks. The demand for the safe-haven/ low yielding currency euro appears to dissipate as markets look for more returns on their investments from higher-yielding assets such as equities against the back-drop of improved risk sentiment.Moreover, markets continue to unwind USD shorts after two back-to back sessions of losses, ahead of Yellen’s testimony due later in the day.
The pound pushed higher against the dollar on Wednesday as overall market sentiment improved, but gains were held in check after data showing that U.K. industrial output fell by the most since September 2012 in December. GBP/USD was up 0.22% to 1.4503 from around 1.4461 ahead of the data. The Office for National Statistics said industrial output fell 1.1% in December after a 0.8% drop in November. Economists had forecast a more modest 0.1% decline. The large fall was due in large part to a 4.6% decline in oil and gas extraction and a 4% drop in mining. Manufacturing output fell 0.2% after dropping 0.3% in December. Economists had expected manufacturing output to edge up 0.1%.On a year-over-year basis manufacturing output was down 1.7%. The data added to fears that the U.K. economy lost momentum at the end of 2015. But the pound shrugged off the data as gains in European stock markets bolstered risk appetite.
- BUY GBP/USD ABOVE 1.4516 TARGET 1.4521 1.4527 SL 1.4510
- SELL GBP/USD BELOW 1.4446 TARGET 1.4441 1.4435 SL 1.4452