INTERNATIONAL CURRENCY BUZZ :
- Forex -Aussie, kiwi decline vs. greenback in late trade
- Forex -Dollar rises vs. rivals but remains near 5-1/2 month trough
- Forex-Dollar struggles to recover after worst week in two months
The euro is flat on Monday, as EUR/USD is trading at 1.1370 in the European session. On the release front, Eurozone Unemployment Rate remained at 10.3%, matching the forecast. Spanish Unemployment Change was excellent, posting a sharp decline of 58.2 thousand. This was the indicator’s strongest reading in seven months. Eurozone Sentix Investor Confidence improved slightly to 5.7 points, but this was well short of the estimate of 6.9 points. In the US, it’s a quiet start to the week, with no major releases on the schedule.The US dollar suffered its worst week in two months, as EUR/USD surged some 230 points. The euro took full advantage of Janet Yellen’s very dovish comments last week at a speech in New York. Yellen warned of risks to the US economy from uncertainty in the global markets and the slowdown in China, and poured cold water on speculation of an April rate hike.
The pound edged lower against the U.S. dollar on Monday but the greenback remained under pressure after Friday’s strong U.S. jobs report did little to alter the view that the Federal Reserve will stick to a cautious approach on rate hikes.GBP/USD touched lows of 1.4201 and was last at 1.4198, off 0.18% for the day. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 94.75, holding above last Thursday’s five-and-a-half month lows of 94.31.The index ended the previous week down 1.65% after Fed Chair Janet Yellen said global risks to the U.S. economy justified taking a cautious approach to raising interest rates.The dollar found some support after Friday’s nonfarm payrolls report showed that the U.S. economy added a larger-than-expected 215,000 jobs last month.
- BUY GBP/USD ABOVE 1.4240 TARGET 1.4260 1.4290 SL 1.4210
- SELL GBP/USD BELOW 1.4200 TARGET 1.4180 1.4150 SL 1.4230