12Feb

IForex Market Trading Signals and News – 12 February 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex -Aussie holds steady, kiwi slips in cautious trade
  • Forex -Dollar hits fresh 15-month lows against yen after Yellen
  • Forex -Dollar drops vs. rivals on U.S. rate hike uncertainty

EUR/USD
The shared currency is trading on a firmer footing vs. the dollar on Thursday, with EUR/USD trading well beyond the 1.1300 handle. The pair has surrendered the earlier spike to the 1.1360 area against the backdrop of persistent risk-off sentiment, fuelled at the same time by the negative performance of European equity markets.Ahead in the session there are no scheduled releases in Euroland while Initial Claims and another testimony by Chairwoman J.Yellen will grab all the attention across the pond later. The pair is now advancing 0.24% at 1.1321 with the next hurdle at 1.1460 (monthly high Sep.18) ahead of 1.1496 (monthly high Oct.15) and finally 1.1713 (post- PBoC high Aug.24). On the other hand, a breakdown of 1.1055 (200-day sma) would open the door to 1.1002 (20-day sma) and finally 1.0963 (100-day sma).

GBP/USD
The GBP/USD pair halted its 2-day rally and reverted to the red zone in the European session, as risk-aversion was rife amid renewed weakness in the European indices. The GBP/USD pair trades 0.71% lower at 1.4417, hovering within a striking distance of the 1.44 handle. Having peaked at 1.4564 levels in early Asia, the GBP/USD pair continues to inch lower, with selling pressure intensifying over the last hours as the European equities resumed the downtrend and sparked renewed risk-aversion wave across Europe. The UK’s FTSE drops -2.63%, while the pan-European benchmark, the Euro Stoxx slumps over -3.30%.Markets are giving up higher-yielding currencies such as the GBP in favour of safe-haven assets like the yen, in a bid to protect their capital amid ongoing global sell-off. In the day ahead amid a lack of fundamental triggers, the oil price action and sentiment on the equities will drive the cable.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4470 TARGET 1.4490 1.4520 SL 1.4440
  • SELL GBP/USD BELOW 1.4395 TARGET 1.4375 1.4345 SL 1.4425

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