INTERNATIONAL CURRENCY BUZZ :
- Forex – EUR/USD little changed after string of PMI reports
- Forex – GBP/USD moves lower as U.K. PMIs add to post-Brexit fears
- Forex – Dollar steady vs. euro, yen as focus remains on central banks
The euro was little changed against the dollar on Friday, after the release of mostly positive data from the euro zone, as markets were still digesting the European Central Bank’s decision on Thursday to leave monetary policy on hold. EUR/USD was little changed at 1.1031, still close to Thursday’s one-month trough of 1.0979. The euro strengthened briefly after ECB President Mario Draghi said on Thursday that European markets weathered the post-Brexit volatility with “encouraging resilience”, but reiterated that the central bank is ready to act by using all the instruments available under its mandate if necessary.Draghi also said the euro zone recovery faces several headwinds, and the risks remain tilted to the downside, citing the UK referendum, slowing emerging markets and the slow pace of structural reforms as key threats.
The pound moved lower against the U.S. dollar on Friday, after the release of downbeat economic reports from the U.K. added to concerns over the outlook for Britain’s growth following the country’s decision to leave the European Union. GBP/USD hit 1.3173 during European morning trade, the session low; the pair subsequently consolidated at 1.3175, sliding 0.42%. Cable was likely to find support at 1.3061, the low of July 20 and resistance at 1.3313, the high of July 18. Research group Markit said its flash U.K. manufacturing purchasing managers’ index fell to 49.1 in July from a reading of 52.1 in June. Economists had expected the index to fall to 47.8 this month.Meanwhile, the U.K. services PMI dropped to 47.4 in July from a reading of 52.3 in June, compared to expectations for a decline to 48.9.
- BUY GBP/USD ABOVE 1.3110 TGT 1.3130 1.3160 SL 1.3080
- SELL GBP/USD BELOW 1.3060 TGT 1.3040 1.3010 SL 1.3090