INTERNATIONAL CURRENCY BUZZ :
- Forex -Aussie, kiwi rally vs. greenback on oil rebound
- Forex -Dollar gains, eyes on G20, Bank of Canada
- Forex- Yen, euro retreat after rally as dollar rebounds
The GBP bulls found some support just ahead of 1.42 barrier, allowing a minor-recovery in GBP/USD in the last hour.The GBP/USD pair trades -0.15% lower at 1.4236, bouncing-off fresh session lows posted at 1.4202 some minutes ago. The cable is seen lock-stepping the oil price movement, with the prices making fresh recovery attempts, tracking a minor pullback in the black gold. Moreover, the GBP/USD pair also finds respite from the rally seen in the European equities on the back of improved risk sentiment. Germany’s DAX jumps +2.35%, the UK’s FTSE rises +1.50%, while the pan- European benchmark, the Euro Stoxx 50 rockets +2.71%.However, the bearish pressures still remain intact amid broad based US dollar recovery on expectations of a rebound in the US retail sales as well as PPI data, due later in the NY session.
The EUR/USD pair is seen consolidating the overnight retreat amid broad based US dollar recovery, heading into the early European trades.EUR/USD trades -0.35% lower at fresh session lows of 1.1366, having met fresh selling pressure just shy of 1.14 handle. The main currency pair remains under strong selling pressure this Wednesday on the back of rising demand for risk currencies such as the US dollar backed by the risk-on rally in the equities. The USD index now gains +0.16% to 94.17, at fresh session highs. Moreover, markets prefer to favour the US currency ahead of the US retail sales and PP figures lined up for release later in the NA session. While better than expected Chinese trade figures also boosted market sentiment, with the traders seeking to take the yield advantage at the cost of the safe-haven euro.Looking ahead, the major awaits the European open for fresh cues on the overall risk sentient ahead of the Euro zone industrial production data. While the main market moving events are expected to be the US datasets for today.
- BUY GBP/USD ABOVE 1.4247 TARGET 1.4267 1.4297 SL 1.4217
- SELL GBP/USD BELOW 1.4194 TARGET 1.4174 1.4144 SL 1.4224