INTERNATIONAL CURRENCY BUZZ :
- Forex – Dollar slips lower vs. rivals, U.S. data ahead
- Forex – Aussie edges higher on RBA minutes, kiwi declines
- Forex – Euro and yen gain as risk appetite fizzles
The euro rose against the dollar on Tuesday, as market sentiment soured with European shares and oil prices turning lower after earlier gains.Risk appetite faded after a meeting between oil ministers from Saudi Arabia, Russia, Qatar and Venezuela ended with consensus to freeze output, but not to cut production.The U.S. dollar index, which measures the green-back’s strength against a trade-weighted basket of six major currencies, was down 0.26% to 96.50. The low yielding euro rose against the dollar, with EUR/USD rising 0.23% to 1.1181. The euro’s gains were held in check after European Central Bank President Mario Draghi said Monday the bank would not hesitate to act in March, reinforcing expectations for additional stimulus measures.Meanwhile, data on Tuesday showed that German economic sentiment fell sharply this month, amid concerns over falling oil prices, slowing global growth and heightened market volatility
The pound was trading close to the day’s highs against the dollar on Tuesday after data showing that the annual rate of inflation in the U.K. rose to a one-year high in January. GBP/USD was up 0.35% at 1.4488, close to the day’s highs of 1.4516.The Office for National Statistics reported that the consumer price index rose 0.3% on a year-over-year basis last month, matching forecasts and up from 0.2% in December.The main contributors to the increase in consumer prices were motor fuels and also to a lesser degree alcoholic beverages and clothing. Air fare prices partially offset the rise in inflation, falling by more than they did a year ago. Consumer prices fell 0.8% in January from a month earlier, worse than forecasts for a decline of 0.7% and following a gain of 0.1% in the prior month.
- BUY GBP/USD ABOVE 1.4470 TARGET 1.4490 1.4520 SL 1.4440
- SELL GBP/USD BELOW 1.4420 TARGET 1.4400 1.4380 SL 1.4450