INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar moves higher as market sentiment improves
- Forex -Yen and euro sink as China and Japan ease global nerves
- Forex -Aussie and kiwi strengthen vs. greenback but gains capped
Although euro extended its weakness against the greenback after meeting renewed selling interest at 1.1230 at European open n fell to a fresh intra-day low of 1.1188, cross-buying in euro vs other major ccys lifted price to 1.1209. In European morning, data showed the European Union’s trade surplus increased to 24.3B euros in Dec 2014 compare to 23.6B euros in preceding month. At present, offers are noted at 1.1220-30, then 1.1240-50 with stops above 1.1270. On the downside, bids are reported at 1.1180-70 and more around 1.1160 with stops below 1.1150.
The GBP/USD pair trades uneventfully around the 1.4500 level, unchanged ever since the day started and unable to react to market’s improved mood. The dollar however, trades generally higher across the board, as during the Asian session, speculation that Japan will intervene further to weaken the yen sent the local benchmark, the Nikkei 225, up over 1,000 points.In Europe, stocks opened strongly higher, with the London FTSE 100 extending its Friday’s advance; however, the GBP/USD pair remains within a tight range. With no data in the UK and a holiday in the US, the pair will likely remain limited this Monday, with the risk remaining towards the downside as long as stocks keep running.
- BUY GBP/USD ABOVE 1.4500 TARGET 1.4520 1.4550 SL 1.4470
- SELL GBP/USD BELOW 1.4460 TARGET 1.4440 1.4410 SL 1.4490