MARKET UPDATES :
- Forex – Pound touches day’s highs after UK data, gains checked
- Forex – Dollar index at 5-week lows on diminished rate hike bets
- Forex – Aussie edges lower, kiwi gains ground vs. greenback
EUR/USD inched up in cautious trade, as yields on German bunds sunk to an all-time record low while foreign exchange traders continued to react to nebulous comments from Janet Yellen on the possibility of a summer rate hike from the Federal Reserve. The currency pair traded between 1.1339 and 1.1380, before settling at 1.1357, up 0.02% on the session. EUR/USD has traded in a tight range in each of the last three sessions since surging nearly 2% last Friday after disappointing U.S. employment data increased the possibility that the Fed could take a June interest rate hike off the table. With the recent rally, the euro has nearly erased all of its losses from May’s swoon when it fell from 9-month highs versus its American counterpart.EUR/USD likely gained support at 1.1055, the low from March 15 and was met with resistance at 1.1616, the high from May 3.
The pound touched the day’s highs against the dollar on Wednesday after data showing that U.K. industrial output rose at the fastest rate in nearly four years in April.GBP/USD hit highs of 1.4579 immediately following the release of the data, before pulling back to 1.4531. The Office for National Statistics said industrial production rose 2.0% in April after a 0.3% increase in March, the largest monthly increase since July 2012.Manufacturing output rose 2.3% after a 0.1% increase in March, in what was also the fastest monthly increase since July 2012.Output in the pharmaceuticals sector rose 8.6% the ONS said, the biggest month gain since February 2014. The pound’s gains were held in check amid ongoing uncertainty over whether Britain will remain in the European Union or not at a referendum on June 23.
STOCK RECOMMENDATION :
- BUY GBP/USD ABOVE 1.4580 TGT 1.4600 1.4630 SL 1.4550
- SELL GBP/USD BELOW 1.4500 TGT 1.4480 1.4450 SL 1.4530