10May
Forex-trading-in-Kenya

Iforex Market Insight : Epic Research

INTERNATIONAL CURRENCY BUZZ

Forex- Dollar Backs Off 2018 Highs as Rally Pauses
Forex- EUR/USD could see gains extended to 1.2000/50
Forex- GBP/USD bulls challenge the 1.3600 handle as US Dollar retreats from highs

EUR/USD
The correction lower in the buck remains well and sound on Wednesday and is now allowing EUR/USD to  move  closer  to  the  1.1900  handle,  or  session  peaks.  The  pair  is  edging higher today following the renewed softer tone around the greenback. In fact, seems USD sellers  have  stepped  in  today  in  response  to  the  strong  rebound  in  the  buck  in  recent weeks, which managed to retake the 93.00 handle and above, area last visited in December 2017. Adding to today’s offered bias in USD, US Producer Prices rose less than expected during April at an annualized 2.6% and 0.1% inter month. Core prices rose 0.2% on a monthly basis and 2.3% over the last twelve months. At the moment, the pair is gaining 0.10% at 1.1877 facing the next hurdle at 1.1984 (10 day sma) seconded 1.2018 (200 day sma)  and  finally  1.2153  (low  Mar.1).  On  the  downside,  a  break  below  1.1823  (2018  low May 8) would open the door to 1.1768 (78.6% Fibo of November February up move) and finally 1.1718 (monthly low Dec.12 2017).

GBP/USD

The  GBP/USD  is  trading  at  around  1.3593  up  0.34%  on Wednesday  as  investors  are slowly  unwinding  their  short  GBP/USD  positions  ahead  of  the  Bank  of  England  rate decision and quarterly Inflation Report on Thursday. Cable bulls gathered some momentum and managed to orchestrate a counter trend move from the 1.3500 handle earlier in the European session to challenge the 1.3600 handle in the American session. The  US  dollar  is  trading  lower  on  Wednesday  below  the  93.00  mark  as  investors  are  taking  some  profits  off  the  table  after  US  President  Trump  announced  on Tuesday that he withdrew the US from the Iran nuclear deal. Adding pressure to the greenback  is  the  worse than expected  Producer  Price  Index  (PPI)  data.  The  PPI  ex Food  and  Energy  year on year  to  April  came  below  expectations  at  2.3%  against 2.4% forecast by analysts. Technically, the GBP/USD is oversold and there is a combination of unwinding short positions and bottom pickers which is keeping the cable in the 1.3500 – 1.3600 range.

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