22Feb

IForex Market Trading Signals and News – 22 February 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex – Dollar edges lower vs. yen, euro in cautious trade
  • Forex – Dollar holds steady vs. rivals, U.S. data on tap
  • Forex – USD/CAD moves higher after U.S., Canadian data

EUR/USD
The euro held steady near two-week lows against the U.S. dollar on Friday, as positive U.S. inflation data lent broad support to the greenback, while growing expectations for further easing by the European Central Bank dampened demand for the single currency. EUR/USD hit 1.1067 during U.S. morning trade, the pair’s lowest since February 3; the pair subsequently consolidated at 1.1104.The pair was likely to find support at 1.0987, the low of October 6 and resistance at 1.1153, Thursday’s high. Data showed that the U.S. consumer price index was flat in January, compared to expectations for a 0.1% downtick and after a 0.1% fall the previous month. Year-on-year, consumer prices increased by 1.4% last month. Core CPI, which excludes food and energy, rose 0.3% in January, more than the expected 0.2% gain and after an increase of 0.2% in December.Meanwhile, sentiment on the single currency remained vulnerable after the minutes of the European Central Bank’s January meeting, released on Thursday, signaled that the bank is prepared to inject further monetary easing next month if necessary to bolster growth.

GBP/USD
The pound slipped lower against the U.S. dollar on Friday, after the release of mixed economic reports from the U.K. and as investors continued to focus on discussions over Britain’s European Union membership. GBP/USD hit 1.4297 during European morning trade, the session low; the pair subsequently consolidated at 1.4304, shedding 0.23%.Cable was likely to find support at 1.4233, Wednesday’s low and resistance at 1.4517, Tuesday’s high.The U.K. Office for National Statistics said that retail sales rose 2.3% in January, beating expectations for a 0.8% gain. Retail sales declined by 1.4% in December, whose figure was revised from a previously estimated 1.0% fall.Year-on-year, retail sales climbed 5.2% last month, exceeding expectations for a 3.6% riseCore retail sales, which exclude automobiles and fuel, increased by 2.3% in January, compared to expectations for an uptick of 0.7%. Core retail sales slipped 1.3% in December, whose figure was revised from a previously estimated 0.9% decline.

RECOMMENDATION :

  • 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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