MARKET UPDATES :
- Forex – Dollar hovers at 2-month highs ahead of U.S. data
- Forex – Euro holding above 10-week lows after EZ inflation, jobs data
- Forex- Aussie and kiwi move higher on upbeat data
The euro stayed supported above 10-week lows against the dollar on Tuesday after data showing that euro zone consumer prices remained in negative territory this month, though the rate of deflation eased.EUR/USD was last at 1.1131, holding above the 10-week trough of 1.1097 set on Monday.Eurostat reported that the flash estimate showed that consumer prices in the single currency bloc fell 0.1% on a year-over-year basis in May, in line with economists’ expectations after falling 0.2% in April.The European Central Bank targets inflation of close to, but just below 2%. The decline in inflation was due in large part to lower oil prices, Eurostat said.Energy prices fell by 8.1% in May from a year earlier, slowing from an 8.7% fall in April.Core inflation, which strips out energy and food costs, rose by 0.8% in May from 0.7% in April.
GBP/USD is currently trading with a strong bullish bias. Yesterday, the pair traded short as previously forecasted but ended up closing a few pips from our first target 1.4575. Currently, this pair is pretty much bullish and may break above 1.4706, but should not close above 1.4818. In the meantime, we are waiting for a clear breakout above 1.4729 to give us the green light to continue to the upper-side. This view can only be invalided should the price end up rebounding from 1.4729. A rebound from this resistance level will lead to an acceleration to the lower side but should not go below 1.4480. This pair should be traded alongside GBP/CHF, and GBP/JPY. These pairs have a strong positive correlation and will thus have a similar price action during this intraday.
- BUY GBP/USD AROUND 1.4565-1.4568 TGT 1.4598 1.4628 SL 1.4535
- SELL GBP/USD BELOW 1.4540 TGT 1.4520 1.4490 SL 1.4570