INTERNATIONAL CURRENCY BUZZ :
- Forex – Dollar under pressure, on track for biggest quarterly fall in five years
- Forex -Dollar slips lower ahead of U.S. jobs data
- Forex-Dollar on the defensive as Fed’s dovish message hits home
The euro rose to fresh seven-week highs against the weaker dollar on Thursday after data showing that the annual rate of inflation in the euro area fell again in March, but at a slower pace than in the previous month.EUR/USD hit highs of 1.1370, the most since February 11, up from around 1.1355 ahead of the data.The annual rate of consumer inflation fell 0.1% in March Eurostat said, after an annualized 0.2% fall in February. The European Central Bank targets inflation of close to, but just below 2%. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was close to five-month lows at 94.64.The greenback remained on the defensive as investors pushed back expectations for a near-term rate hike by the Federal Reserve in the wake of dovish comments by Fed Chair Janet Yellen.
Sterling edged up against the dollar on Thursday after data showing that the U.K. economy grew at a faster than expected pace in the final quarter of 2015, but the nation’s current account deficit rose to a record high.GBP/USD touched highs of 1.4396, up from around 1.4359 ahead of the data.The Office of National Statistics said gross domestic product rose by 0.6% in the three months to December, up from last month’s estimate of 0.5% growth. Economists had expected no change.The U.K. economy expanded 2.1% on a year-over-year basis, better than the initial estimate of 1.9%. Again, economists had expected an unchanged reading.The dominant service sector grew by 0.8% the ONS said. Industrial production shrank by 0.4%, with manufacturing expanding just 0.1%.
- BUY GBP/USD ABOVE 1.4396 TARGET 1.4416 1.4446 SL BELOW 1.4366
- SELL GBP/USD BELOW 1.4360 TARGET 1.4340 1.4310 SL ABOVE 1.4390