INTERNATIONAL CURRENCY BUZZ :
- Forex -Sterling pares back gains as U.K. first quarter growth slows
- Forex -Dollar lower as central bank meetings eyed
- Forex-Aussie plunges, Fed eyed for dollar direction
EUR/USD posted moderate gains in a cautious session, as investors continued to await the Federal Reserve’s latest monetary policy decision in intraday trading on Wednesday afternoon.The currency pair traded between 1.1256 and 1.1339, before settling at 1.1298, up 0.0032 or 0.28% on the session. Following a brief four-day losing streak last week, the euro has closed higher against the dollar in each of the last two trading days. Despite the slight gains, the euro has still closed below 1.13 against the dollar in the last six sessions. Nevertheless, the euro is still up against its American counterpart by 1% over the last month, amid dovish indications from the Fed of a delayed interest rate hike.EUR/USD likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1496, the high from Oct. 15.
The pound pared back early gains against the dollar on Wednesday after data showing that U.K. economic growth slowed in the first three months of the year. GBP/USD was last at 1.4573, off earlier highs of 1.4619. Sterling was also little changed against the euro, with EUR/GBP at 0.7750 off earlier highs of 0.7784. The U.K. economy grew 0.4% in the three months to March the Office of National Statistics said, in line with economists’ expectations, but slowing from 0.6% in the prior quarter. The service sector was the only part of the economy to grow in the first quarter, the data showed, with manufacturing, construction and agriculture all contracting. Service sector output grew by 0.6%, industrial production fell by 0.4% and construction contracted by 0.9%.
- BUY GBP/USD ABOVE 1.4640 TARGET 1.4660 1.4690 SL BELOW 1.4630
- SELL GBP/USD BELOW 1.4566 TARGET 1.4546 1.4516 SL ABOVE 1.4596