INTERNATIONAL CURRENCY BUZZ :
- Forex – Aussie hits 2-month highs on strong data, kiwi holds steady
- Forex -Dollar gains with Friday’s US jobs data in focus
- Forex -Dollar turns lower against euro, yen on doubts over rally’s momentum
The common currency keeps the buoyant tone on Thursday, lifting EUR/USD to test fresh tops in the 1.0880 area. The buying interest around EUR remains firm today after Services PMI in Germany and the euro area have bettered the preliminary readings for the month of February. Adding to the upbeat sentiment around the pair, EMU’s Retail Sales have surpassed initial forecasts during January, expanding 0.4% on a monthly basis and 2.0% over the last twelve months.With releases in Euroland now out of the way, the US docket will take the driver’s seat, with Initial Claims, Factory Orders and the ISM Non-manufacturing all expected later in the NA session.The pair is now up 0.13% at 1.0880 facing the next up barrier at 1.0925 (100-day sma) ahead of 1.1046 (200-day sma) and then 1.1123 (38.2% Fibo of December up-move). On the flip side, a breakdown of 1.0823 (low Mar.2) would target 1.0777 (low Jan.21) en route to 1.0709 (2016 low Jan.5).
The pound edged lower against the dollar and the euro on Thursday after data showing that U.K. service sector growth slowed to its weakest level in three years amid fears over the growing risk of Brexit. GBP/USD hit lows of 1.4034 before recovering slightly to 1.4082.The Markit services purchasing managers’ index declined to 52.7 last month from January’s 55.6. Economists had expected the index to tick down to 55.1.It was the lowest reading since March 2013.New orders in the sector rose at the weakest pace since early 2013 and employment growth hit a two-and-a-half year low. “Survey responses reveal that firms are worried about signs of faltering demand, but board- rooms have also become unsettled by concerns regarding the increased risk of Brexit,” Chris Williamson, Markit chief economist said.
- BUY GBP/USD ABOVE 1.4130 TARGET 1.4150 1.4180 SL 1.4100
- SELL GBP/USD BELOW 1.4070 TARGET 1.4050 1.4020 SL 1.4100
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