INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen finds favour as Asia’s appetite for risk wanes
- Forex -Dollar on the back foot, sterling unsettled by politics
- Forex-U.K. political turmoil hits pound after surprise resignation
EUR/USD is quiet on Monday, as the pair trades at 112.60 in the European session. On the release front, Eurozone Current Account came in at EUR 25.4 billion, short of expectations. Later in the day, the Eurozone releases Consumer Confidence. In the US, the sole event on the schedule is Existing Home Sales, with the markets expecting the indicator to slip to 5.32 million. On Tuesday, we’ll get a look at two key German indicators – Ifo Business Climate and ZEW Economic Sentiment. Weak inflation numbers continue to raise concerns about the health of the Eurozone economy. On Friday, German PPI, which measures inflation in the manufacturing sector, came in at -0.5%, below the forecast of -0.2%. It marked the seventh straight decline for the indicator.
The pound weakened on Monday after Ian Duncan Smith, Secretary of State for Work and Pensions and a big voice in the Conservative party, unexpectedly announced his resignation late Friday over disagreements on a budget he considers to be “deeply unfair”. GBP/USD dropped 0.46% to 1.4415 at 9:34AM GMT, or 5:34AM ETIn a parting statement on Sunday, Duncan Smith explained that his decision was not based on his support for the leave campaign, known as Brexit, with regard to the referendum on Britain’s membership in the European Union (EU) to be held on June 23.He criticized the budget for causing substantial reductions in disability benefits while offering tax cuts for the wealthy.
- BUY GBP/USD ABOVE 1.4480 TARGET 1.4500 1.4530 SL 1.4450
- SELL GBP/USD BELOW 1.4370 TARGET 1.4350 1.4320 SL 1.4400