INTERNATIONAL CURRENCY BUZZ :
- Forex – Euro hits fresh 6-week lows as ECB holds, Draghi awaited
- Forex – AUD/USD holds steady at six-year lows after Greek vote
- Forex – NZD/USD drops to 6-year lows in cautious trade
The euro fell to fresh six-week lows against the dollar on Thursday after the European Central Bank left monetary policy across the euro zone unchanged, as investors awaited comments by President Mario Draghi later in the day. EUR/USD hit lows of 1.0879, the weakest since May 27 and was last at 1.0882, down 0.62% for the day. The ECB maintained its benchmark interest rate at a record-low 0.05%, in line with market expectations. The central bank also held its marginal lending at 0.30% and left its deposit facility rate unchanged at minus 0.20%. Investors were waiting to see whether the ECB will increase Emergency Liquidity Assistance to Greek banks, the first step toward allowing them to reopen after being closed for nearly three weeks.
The Australian dollar held steady at six-year lows against its U.S. counterpart on Thursday, as markets eyed the Greek parliamentary vote on austerity measures after violent protests erupted in Athens Wednesday evening. AUD/USD hit 0.7350 during late Asian trade, the pair’s lowest since May 2009; the pair subsequently consolidated at 0.7385. The pair was likely to find support at 0.7239 and resistance at 0.7488, Wednesday’s high. Markets were jittery after Greece’s parliament approved late Wednesday the bailout package presented by prime minister Alexis Tsipras. Tsipras can now begin working with Greece’s European creditors to obtain emergency funding, in exchange for a series of economic reforms. The vote came as violent protests erupted in front the Greek parliament in Athens on Wednesday evening contesting the bailout package.
- BUY GBP/USD ABOVE 1.5680 TARGET 1.5700 1.5730 SL 1.5650
- SELL GBP/USD BELOW 1.5550 TARGET 1.5530 1.5500 SL 1.5580