MARKET UPDATES :
- Forex – Aussie little changed, kiwi rises vs. weaker greenback
- Forex -Yen rises to fresh 18-month highs against weaker dollar
- Forex-Australia, NZ dollars regain some ground on USD and yen
EUR/USD is quiet on Monday, after posting excellent gains on Friday. The pair is trading at 1.1480 in the European session. On the release front, German and Eurozone Manufacturing PMIs both showed slight expansion. In the US, today’s highlight is ISM Manufacturing PMI. The estimate stands at 51.6 points.The week started off on a positive note, as the April German and Eurozone Manufacturing PMIs both pointed to slight growth in the manufacturing sector. German Manufacturing PMI climbed to 51.8 points, close to the forecast of 51.9 points. The Eurozone release was almost unchanged at 51.7 points, beating the estimate of 51.5 points. German key releases were soft last week, raising concerns about the strength of Europe’s largest economy. Preliminary CPI came in at -0.2%, its first decline in four months. Retail Sales disappointed, posting a sharp decline of 1.1%. The markets had expected a gain of 0.3%.
The sterling is now decoupling from the rest of the risk-associated assets on Monday, lifting GBP/USD to daily highs in the 1.4630 area.Spot is advancing for the third session in a row today, looking to regain last Friday’s peaks in the 1.4670 area, while the softer tone around the US dollar continues to be the main source of the up move.In addition, better-than-expected UK data plus decreasing fears on a ‘Brexit’ scenario have lent extra support to GBP, helping the pair to post its fourth straight week with gains after April’s troughs in the 1.40 neighbourhood. As of writing the pair is up 0.21% at 1.4634 and a break above 1.4671 (high Apr.29) would open the door to 1.4865 (200-day sma) and finally 1.4948 (high Dec.25). On the flip side, the next support lines up at 1.4392 (100-day sma) ahead of 1.4358 (20-day sma) and then 1.4298.
- BUY GBP/USD ABOVE 1.4640 TGT 1.4660 1.14690 SL 1.4610
- SELL GBP/USD BELOW 1.4604 TGT 1.4584 1.4554 SL 1.4634