INTERNATIONAL CURRENCY BUZZ :
- Forex -Euro dips after surge post-ECB
- Forex -Dollar moves higher, recovers from Draghi remarks
- Forex-Australia, NZ dlrs eclipsed by euro, Aussie still shines vs USD
The euro pulled away from one-month highs against the U.S. dollar on Friday, as markets digested the European Central Bank’s most recent policy decision and comments by ECB President Mario Draghi.EUR/USD slipped 0.16% to 1.1161, pulling away from the previous session’s one-month peak of 1.1217.The euro initially weakened after the ECB cut interest rates across the euro zone to new record lows and boosted its quantitative easing program on Thursday.The ECB wrong footed markets by cutting its benchmark interest rate to a record-low of zero from 0.05%. Market watchers had been expecting no change. The central bank also cut the deposit facility rate deeper into negative territory, to minus 0.4% and cut the marginal lending rate cut to 0.25% from 0.30%.
The pound was almost unchanged against the U.S. dollar on Friday, hovering close to a three-week high after data showed that the U.K. trade deficit narrowed more-than-expected in January. GBP/USD hit 1.4298 during European morning trade, the session high; the pair subsequently consolidated at 1.4285.Cable was likely to find support at 1.4115, Thursday’s low and resistance at 1.4409, the high of February 19.The U.K. Office for National Statistics said the country’s trade deficit narrowed to £10.29 billion in January from £10.45 billion in December, whose figure was revised from an initial deficit of £9.92 billion.Economists had expected the trade deficit to come in at £10.3 billion in January.
- BUY GBP/USD ABOVE 1.4280 TARGET 1.4260 1.4230 SL 1.4310
- SELL GBP/USD BELOW 1.4250 TAGET 1.4230 1.4200 SL 1.4280