INTERNATIONAL CURRENCY BUZZ :
- Forex – Aussie and kiwi gain ground, but gains capped
- Forex – Dollar rises to 2-week highs vs. other majors
- Forex – Sterling hit by ‘Brexit’ worries, others major currencies calm
The euro to the lowest level in three weeks against the dollar on Monday after data showing that euro zone private sector activity slowed in February underlined expectations for more easing by the European Central Bank.EUR/USD hit lows of 1.1056, the lowest level since February 3 and was last at 1.1065, down 0.6% for the day. The Markit euro zone composite purchasing managers’ index, which measures both the manufacturing and service sectors, dropped to a 13-month low of 52.7 in February from January’s 53.6.Economists had forecast a reading of 53.3.Manufacturing output showed the smallest increase since December 2014, moving closer to stagnation amid a further faltering in growth of new orders and exports.
The pound fell to three week lows against the dollar on Monday and weakened against the euro after London Mayor Boris Johnson’s shock decision to back a campaign for Britain to exit the European Union. GBP/USD hit lows of 1.4176, the lowest since January 29 and was last at 1.4203, off 1.4% for the day.British Prime Minister David Cameron reached a deal with EU leaders on Friday giving Britain a special status in the bloc, which paved the way for him to call a referendum on EU membership on June 23.But on Sunday London’s Mayor Boris Johnson said he would be supporting the campaign to leave, arguing it is a chance “to vote for real change”.
- BUY GBP/USD ABOVE 1.4220 TARGET 1.4240 1.4270 SL 1.4190
- SELL GBP/USD BELOW 1.4170 TARGET 1.4150 1.4120 SL 1.4200