INTERNATIONAL CURRENCY BUZZ :
- Forex – Pound off fresh 31-year lows but below $1.30
- Forex – Aussie and kiwi move lower as Brexit fears persist
- Forex – Pound drops over 1% in Asia on Brexit views, yen soars
EUR/USD is showing little movement on Wednesday, following losses in the Tuesday session. The pair is trading at 1.1060. On the release front, German Factory Orders disappointed with a flat reading of 0.0%, shy of the estimate of 1.0%. The US will release ISM Non-Manufacturing PMI, with the estimate standing at 53.3 points. The spotlight will be on the central banks, as ECB President Mario Draghi addresses an ECB event in Frankfurt, while the Federal Reserve will release the minutes of its June policy meeting. On Thursday, employment numbers will be in focus, with the release of ADP Nonfarm Employment Change and Unemployment Claims.
The pound bounced off fresh 31-year lows against the U.S. dollar on Wednesday, but still remained below the $1.30 threshold amid mounting concerns over the effects of the Brexit vote on the British economy.GBP/USD hit 1.2797 during European morning trade, a fresh 31-year low; the pair subsequently consolidated at 1.2937, down 0.64%.The pound came under broad selling pressure after the Bank of England warned on Tuesday of “challenging” risks to financial stability fol- lowing the Brexit vote and eased regulatory requirements on the banking sector.BoE Governor Mark Carney said the move represented a “major change” that would help the economy to cope with the Brexit consequences.In its bi-annual financial stability report, the BoE said the risks it had feared ahead of the Brexit poll had started to materialise, as sterling plunged to 31-year lows and as financial stocks tumbled 20%.
- BUY GBP/USD ABOVE 1.3000 TGT 1.3020 1.3050 SL 1.2970
- SELL GBP/USD AROUND 1.3196 TGT 1.3176 1.3146 SL 1.3226