INTERNATIONAL CURRENCY BUZZ :
- Forex – Aussie and kiwi lose ground vs. greenback in late trade
- Forex – Sterling dips as U.K. wage growth slows
- Forex – Dollar holds steady ahead of U.S. data, Fed minutes
The shared currency has recovered the smile so far on Wednesday, pushing EUR/USD to test fresh daily tops near 1.1170. The pair is posting gains for the first time since Friday, finding quite decent support around the 1.1100 neighbourhood in a context where risk aversion and risk appetite keeps alternating the dominance. Absent releases in Euroland, traders’ attention will shift to the US docket, where Housing Starts, Building Permits, Producer Prices, Industrial Production and Capacity Utilization are all due later ahead of the more relevant FOMC minutes.The pair is now advancing 0.18% at 1.1163 facing the next hurdle at 1.1220 (23.6% Fibo of December up-move) followed by 1.1378 (high Feb.11) and then 1.1460. On the flip side, a breakdown of 1.1059 (200-day sma) would target 1.0965 (61.8% Fibo of December up-move) and finally 1.0709 (YTD low Jan.5).
The pound edged lower against the dollar on Wednesday after the latest U.K. jobs report showed that wage growth slowed in the last three months of 2015, underlining expectations that interest rates will remain on hold for longer. GBP/USD slid from around 1.4289 ahead of the data to an intra-day low of 1.4265. The Office for National Statistics said the unemployment rate remained unchanged at 5.1% in the three months to December,matching the three months to November which was the lowest since mid-2005.Economists had expected the jobless rate to tick down to 5.0%. Annual wage growth, including bonuses, rose 1.9% in the three months to December, matching forecasts, but slowing from 2.1% in the three months to November. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.93.
- BUY GBP/USD ABOVE 1.4340 TARGET 1.4360 1.4390 SL 1.4310
- SELL GBP/USD BELOW 1.4270 TARGET 1.4250 1.4220 SL 1.4300
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