MARKET UPDATES :
- Forex -Dollar edges higher, pulls away from 16-month trough
- Forex -Sterling hits day’s lows after U.K. construction data
- Forex-Yuan, rupee forecast to weaken slightly over coming year:
The EUR/USD pair has moved within striking distance of moving back above 1.1500 handle, recovering from day’s through level of 1.1476 ahead of the Euro-zone service PMI data. The pair on Tuesday witnessed a sharp reversal from intraday peak of 1.1616 and dropped back below 1.1500 level on broad USD recovery from the lowest level since Jan. 2015. Investors also seem to lighten their bearish USD positions ahead of the key jobs data scheduled for release on Friday. Friday’s jobs report along with today’s ISM non-manufacturing index would continue to probe some additional volatility in the pair.Although the pair on Tuesday, managed to break-through 1.1550 immediate resistance but the momentum above 1.1600 faded, dragging the pair back below 1.1500 mark. Traders would now be eyeing 1.1455-50 immediate support, which if broken seems to extend Tuesday’s reve.
The pound touched session lows against the firmer dollar on Wednesday after data showing that construction output in the U.K. rose at the slowest pace in almost three years in April, adding to fears that the economy is losing traction. GBP/USD was down 0.34% at 1.4483 from around 1.4491 ahead of the data. The Markit U.K. construction purchasing managers’ index fell to 52.0 last month from 54.2 in March.Economists had expected the index to fall to 54.0.Commercial building was the strongest performing category in April, while residential construction growth rebounded only slightly from March’s 38-month low and civil engineering activity expanded at the weakest pace so far in 2016, Markit said.
- BUY GBP/USD ABOVE 1.4525 TGT 1.4545 1.4575 SL 1.4495
- SELL GBP/USD AROUND 1.4515 TGT 1.4495 1.4465 SL 1.4545