INTERNATIONAL CURRENCY BUZZ :
- Forex – Dollar hovers near 4-month lows, eyes on data
- Forex -Yen on track for strongest week since late 2008
- Forex -Dollar strengthens vs. rivals ahead of U.S. data
EUR/USD fell modestly on Friday, retreating from three-month highs reached in the prior session, as currency traders continued to assess the risks associated with negative interest rate policies one day after Sweden’s Central Bank unexpectedly lowered their rates deeper below zero. The currency pair traded in a broad range between 1.1214 and 1.1333 before settling at 1.1255, down 0.0061 or 0.54% on the session. Despite the slight losses, EUR/USD has still closed higher in seven of the last 10 sessions and 11 of the last 15. After nearly slipping below 1.08 at the end of last month, the euro is up by nearly 4% against its American counterpart in February.EUR/USD likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1496, the high from Oct. 15. The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained more than 0.45% to an intraday high of 96.25, before closing at 95.99. The index is still down more than 3.7% since the BOJ’s rate decision on January 29.
The pound edged higher against the U.S. dollar on Friday, but gains were expected to be limited as investors remained cautious amid persistant global turmoil and ahead of the release of U.S. data later in the day. GBP/USD hit 1.4528 during European morning trade, the session high; the pair subsequently consolidated at 1.4511, adding 0.26%.Cable was likely to find support at 1.4381, Thursday’s low and resistance at 1.4579, the high of February 10.Investors remained cautious amid ongoing fears over the health of the global economy and the euro zone financial sector. Markets were also jittery as oil prices remained below $28 a barel on Friday, even after the United Arab Emirates energy minister said the OPEC was willing to talk with other exporters about cutting output. In the U.S., Federal Reserve Chair Janet Yellen reiterated to the Senate on Thursday comments made the previous day to Congress.
- BUY GBP/USD ABOVE 1.4525 TARGET 1.4545 1.4575 SL 1.4495
- SELL GBP/USD BELOW 1.4500 TARGET 1.4480 1.4450 SL 1.4530