INTERNATIONAL CURRENCY BUZZ :
- Forex – Euro little changed before ECB meeting
- Forex – GBP/USD edges lower on downbeat U.K. retail sales
- Forex- Aussie edges higher, kiwi holds steady in late trade
EUR/USD is almost unchanged on Thursday, following losses which marked the pair on Wednesday. In the European session, the pair is trading at the 1.13 line. On the release front, the ECB will set interest rates for April, followed by a press conference with ECB president Mario Draghi. The US will follow with two key releases – the Philly Fed Manufacturing Index and Unemployment Claims. On Friday, the Eurozone releases German and Eurozone Manufacturing PMIs.All eyes are on the ECB on Thursday, as the central bank holds its monthly policy meeting. At the March meeting, the ECB lowered the benchmark rate to a flat 0.00% and raised the asset-purchase program from EUR 60 billion to 80 billion/month.
The pound edged lower against the U.S. dollar on Thursday, after the release of downbeat U.K. retail sales data dampened optimism over the strength of the British economy. GBP/USD hit 1.4305 during European morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.4309, slipping 0.16%.Cable was likely to find support at 1.4128, the low of April 18 and resistance at 1.4409, Wednesday’s high.The U.K. Office for National Statistics said that retail sales fell 1.3% in March, compared to the prior 0.5% drop whose figure was revised from the original 0.4% decrease. Analysts had expected retail sales to slip 0.1% last month.Year-on-year, retail sales increased 2.7%, compared to expectations for a 4.4% rise. Core retail sales, which exclude automobile sales, fell 1.6% on the month, compared to the prior 0.3% drop in February, whose figure was revised from an initial 0.2% decline.
- BUY GBP/USD AROUND 1.4320-1.4325 TARGET 1.4350 1.4385 SL 1.4295
- SELL GBP/USD AROUND 1.4390-1.4395 TARGET 1.4365 1.4340 SL 4415