INTERNATIONAL CURRENCY BUZZ :
- Forex – Pound rises to 1-week highs vs. weaker dollar
- Forex – Dollar moves lower vs. euro, yen with all eyes on Fed
- Forex – Yen weaker despite GDP, current account better than expected
The dollar moved lower against the euro and the yen on Tuesday, as uncertainty over the timing of a rate hike by the Federal Reserve mounted ahead of the central bank’s policy meeting scheduled next week. EUR/USD gained 0.42% to trade at 1.1218, the highest level since September 3. Sentiment on the greenback remained vulnerable after Friday’s U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates. EUR/USD gained 0.42% to trade at 1.1218, the highest level since September 3. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.38% at 95.77, the lowest level since September 4. Earlier Tuesday, data showed that Japan’s second quarter gross domestic product fell 0.3%, less than the 0.4% expected drop.
The pound rose to one-week highs against the U.S. dollar on Tuesday, as sentiment on the greenback remained vulnerable ahead of the Federal Reserve’s highly-anticipated policy meeting scheduled next week. GBP/USD hit 1.5389 during European morning trade, the pair’s highest since September 1; the pair subsequently consolidated at 1.5342, gaining 0.42%.Cable was likely to find support at 1.5168, Monday’s low and resistance at 1.5407, the high of September 1. Sentiment on the greenback remained vulnerable after Friday’s U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates. Market participants were also lookig ahead to the Bank of England’s upcoming policy statement on Thursday, for further indications on whether or not it plans to raise interest rates in the near future.Sterling was also higher against the euro, with EUR/GBP shedding 0.37% to 0.7283.
- BUY GBP/USD ABOVE 1.5445 TARGET 1.5465 1.5495 SL 1.5415
- SELL GBP/USD BELOW 1.5370 TARGET 1.5350 1.5320 SL 1.5400