INTERNATIONAL CURRENCY BUZZ
- Forex – GBP/USD climbs near 1-month highs on strong U.K. data.
- Forex – Aussie, kiwi edge higher vs. greenback on China PMI.
- Forex – Aussie up on China PMI manufacturing surveys that show expansion.
The EUR/USD continued to test lows on Wednesday afternoon, with the Euro exchange rates weakened by the morning’s Eurozone data and the US Dollar strengthened in the afternoon by US data.Mortgage applications improved from -2.1% to 2.8% in MBA’s August 26th report, and ADP’s August employment change score was a higher-than-expected 177k. However, the ‘Greenback’ was held back slightly by news that Chicago’s manufacturing PMI score had dropped from 55.8 to 51.5 in August.Confidence in the single currency deteriorated in spite of the German labour market continuing to tighten, with the Euro to Dollar exchange rate prompted to return to a downtrend.
The pound climbed against the U.S. dollar on Thursday and approached a one-month peak after the release of upbeat U.K. manufacturing activity data added to optimism over the strength of the economy post-Brexit.GBP/USD hit 1.3251 during European morning trade,the pair’s highest since August 26; the pair subsequently consolidated at 1.3242, advancing 0.78%.Cable was likely to find support at 1.3063, Wednesday’s low and resistance at 1.3349, the high if August 4.The pound strengthened after data showed that U.K. manufacturing activity moved back into expansionary territory in August from what had been its worst level since early 2013.
- BUY EUR/USD ABOVE 1.1170 TGT 1.1190 1.1220 SL 1.1150.
- SELL EUR/USD BELOW 1.1120 TGT 1.1100 1.1070 SL 1.1150.