INTERNATIONAL CURRENCY BUZZ :
- Forex – GBP/USD edges lower after U.K. unemployment data
- Forex – Aussie, kiwi slide lower vs. greenback as oil prices retreat
- Forex- Yen pushes higher, euro flat ahead of ECB
EUR/USD is showing marginal movement on Wednesday, following gains which marked the pair in the Tuesday session. The pair is trading at 1.1360 in the European session. On the release front, German PPI posted a small gain of 0.2%, missing the estimate. ECB head Mario Draghi will deliver a speech in Frankfurt. Later in the day, the US releases Existing Home Sales as well as Crude Oil Inventories. Thursday will be busy, highlighted by the ECB rate decision. The US releases the Philly Fed Manufacturing Index and Unemployment Claims, both key indicators.Is inflation showing signs of life in the Eurozone? Weak inflation levels have underscored soft economic growth in the bloc, and the threat of deflation remains a constant worry for policymakers. However, there have been some encouraging signs on the inflation front.
The pound edged lower against the U.S. dollar on Wednesday, after the release of downbeat U.K. employment data fueled concerns over the strength of the British economy, although the greenback’s gains were limited by the previous session’s weak U.S. economic reports. GBP/USD hit 1.4348 during European morning trade, the session low; the pair subsequently consolidated at 1.4364, shedding 0.22%.Cable was likely to find support at 1.4284, Tuesday’s low and resistance at 1.4428, the high of March 31.The U.K. Office for National Statistics said that the unemployment rate held at 5.1% in the three months to February, in line with expectations. However, the claimant count unexpectedly rose by 6,700 in February, compared to expectations for a decrease of 11,300 people, and following a drop of 9.300 a month earlier, whose figure was revised from a previously reported decline of 18.000.
- BUY GBP/USD ABOVE 1.4420 TARGET 1.4440 1.4470 SL 1.4380
- SELL GBP/USD BELOW 1.4385 TARGET 1.4365 1.4335 SL 1.4415