INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar slips lower against yen, euro steady
- Forex – Aussie drops on weak jobs data, kiwi edges higher
- Forex – Loonie leads commodity currencies higher, dollar subdued
The EUR/USD pair found fresh bids near 1.1125 region and now crawls higher towards daily highs, mainly backed by broad based US dollar weakness. EUR/USD trades 0.13% higher at 1.1141, heading for a retest of daily highs reached at 1.1150 in late-Asia. The main currency pair was caught by a fresh bid wave after the US dollar fell further into the red against its major peers as the European traders continue to assess the dovish Fed minutes heading into the ECB Jan meeting accounts release.Further, the bulls continue its fight to take-out 1.1150 barrier, as the renewed optimism in the European indices weigh on the safe-haven currency EUR. Germany’s DAX erased losses and now rises 0.40%, while the pan- European benchmark, the Euro Stoxx also regains momentum and advances 0.60%.
The British pound is now picking up pace vs. the greenback, sending GBP/USD to session highs beyond the 1.4300 barrier.Spot has managed to retake levels above 1.4300 the figure after BoE’s Jon Cunliffe has argued he sees no reason to change his outlook on a rate hike by the central bank.The comments have brought in some relief to the sterling, which was trading in lows near 1.4260 area vs. the US dollar.Ahead in the day, US Initial Claims and the Philly Fed Survey will take centre stage later in the NA session, while Retail Sales are next on tap in the UK economy tomorrow.As of writing the pair is up 0.14% at 1.4309 facing the next hurdle at 1.4399 (20-day sma) followed by 1.4522 (38.2% Fibo of 1.5240- 1.4079) and finally 1.4621 (55-day sma). On the other hand, a breach of 1.4200 (psychological level) would aim for 1.4171 (low Jan.26) and then 1.4147 (low Jan.29).
- BUY GBP/USD ABOVE 1.4330 TARGET 1.4350 1.4380 SL 1.4300
- SELL GBP/USD BELOW 1.4270 TARGET 1.4250 1.4220 SL 1.4300