INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen trends weaker in Asia as policymaker views eyed
- Forex -Dollar close to 8-month lows, yen eases
- Forex- Aussie, kiwi move higher vs. broadly softer greenback
EUR/USD has posted considerable gains on Tuesday. In the European session, EUR/USD is trading at 1.1450. On the release front, German CPI and WPI numbers beat expectations. There are no major US releases on Tuesday. We’ll get a look at some key US data on Wednesday, with the release of retail sales reports and PPI.The Eurozone remains gripped by weak inflation levels, which underscore the lack of growth in the economy. There was good news on Tuesday, as German consumer inflation numbers beat expectations. Final CPI impressed in March, with a strong of 0.8%, matching the forecast. This marked the index’s strongest gain in 12 months. German WPI broke a nasty streak of 7 declines, posting a gain of 0.3%, which also matched the forecast. We’ll get a look at Eurozone CPI numbers on Thursday, and if these readings are above expectations, the euro could gain ground.
The pound rose to one-week highs against the U.S. dollar on Tuesday, after the release of higher-than-expected inflation data from the U.K., while the greenback remained broadly under pressure.GBP/USD hit 1.4311 during European morning trade, the pair’s highest since April 4; the pair subsequently consolidated at 1.4287, gaining 0.33%.Cable was likely to find support at 1.4107, Monday’s low and resistance at 1.4378, the high of April 1. The U.K. Office for National Statistics said the rate of consumer price inflation rose by 0.5% last month, above forecasts for an increase of 0.4% and compared to the 0.3% rise in February. Month-over-month, consumer prices rose 0.4% in March, above forecasts for an advance of 0.3% and following a decline of 0.2% in the prior month.
- BUY GBP/USD ABOVE 1.4321 TARGET 1.4341 1.4371 SL 1.4291
- SELL GBP/USD BELOW 1.4280 TARGET 1.4260 1.4230 SL 1.4310