INTERNATIONAL CURRENCY BUZZ
- Forex – GBP/USD holds near one-month highs after U.K. PMI.
- Forex – Yen weaker as eyes turn to U.S. jobs, G-20 summit.
- Forex – Aussie, yen nearly flat in Asia as U.S. nonfarm payrolls awaited.
The dollar was mostly unchanged against other major currencies on Friday, as investors remained cautious ahead of a highly-anticipated U.S. employment report amid growing speculation over a near-term rate hike by the Federal Reserve. EUR/USD held steady at 1.1196. The greenback had weakened after the Institute for Supply Management said on Thursday that its manufacturing activity index dropped to 49.4 last month from July’s reading of 52.6. It was the worst reading since January and missed expectations for a slight drop to 52.0.
The pound held steady near one-month highs against the U.S. dollar on Friday, after the release of upbeat U.K. construction data, as investors remained cautious ahead of a highly-anticipated U.S. employment report due later in the day. GBP/USD hit 1.3293 during European morning trade, the session high; the pair subsequently consolidated at 1.3275. Cable was likely to find support at 1.3123, Thursday’s low and resistance at 1.3372, the high of August 3. Research group Markit said on Friday thats its U.K. construction purchasing managers’ index rose to 49.2 in August from 45.9 the previous month, beating expectations for an increase to 46.1.The data came a day after Markit said its U.K. manufacturing PMI rose to a 10-month high of 53.3 this month from a reading of 48.2 in July.
- BUY GBP/USD ABOVE 1.3290 TGT 1.3310 1.3340 SL 1.3260.
- SELL GBP/USD BELOW 1.3252 TGT 1.3232 1.3202 SL 1.3282.