INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen rises as weak China trade data sours sentiment
- Forex -Aussie, kiwi lose ground amid profit-taking
- Forex -Dollar slips as oil and metals markets rally
The European currency keeps its daily gains vs. the dollar today, with EUR/USD hovering over the 1.1020/25 band so far.The sentiment remains unaltered around the single currency on Tuesday after EMU’s GDP figures showed the economy has expanded 0.3% interquarter during Q4 and 1.6% on an annualized basis, surpassing prior surveys at 1.5%. Ahead in the session, the NFIB’s index is only due in the US calendar followed by the weekly report on crude stockpiles by the API.In the meantime, spot is managing quite well to keep the trade above the 1.1000 handle, although the recent upside will be put to the test later in the week in light of the ECB meeting and prospects of additional stimulus in the region.
The sterling remains on the defensive today, with GBP/USD dropping to session lows in the 1.4220 area.In spite of the current decline, the pair manages to keep the trade in the upper end of the recent range above he 1.4200 mark, hovering over the 50% Fibo retracement of the February down-move.In addition, spot kept the composure after comments by Governor Mark Carney passed largely unnoticed amongst traders, stressing that the BoE will not offer any assessment on a ‘Brexit’ scenario.As of writing the pair is retreating 0.16% at 1.4244 and a breach of 1.4188 (20-day sma) would open the door to 1.4079 (low Jan.21) and then 1.3836 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4348 (61.8% Fibo of 1.4670-1.3833) followed by 1.4387 (55-day sma) and finally 4410.
- BUY GBP/USD ABOVE 1.4284 TARGET 1.4304 1.4334 SL 1.4254
- SELL GBP/USD BELOW 1.4218 TAGET 1.4198 1.4168 SL 1.4248