TRADING TIPS :
- Forex-Dollar index hovers near 12-year highs ahead of nonfarm payrolls.
- Forex- EUR/USD holds steady, near 9-year lows.
- Forex-GBP/USD rises off 18-month lows after upbeat U.K. Data.
GBP/USD hit 1.5150 during European morning trade, the pair’s highest since Wednesday; the pair subsequently consolidated at 1.5134, gaining 0.30%.In a report, the U.K. Office for National Statistics said that manu- facturing production rose 0.7% in November, beating expectations for a 0.3% gain, after a 0.7% fall the previous month.On the other hand, U.K. industrial production ticked down 0.1% in November, data showed on Friday, confounding expectations for an increase of 0.2%. October’s figure was revised to a 0.3% slip from a previously estimated 0.1% fall.A separate report showed that the U.K. trade deficit narrowed to £8.85 billion in November from £9.84 billon in October, whose figure was revised from a previously estimated deficit of £9.62 billion. Analysts had expected the trade deficit to narrow to £9.40 billion in November.
EUR/USD edged up 0.11% to 1.1805, but still remained within close distance of Thursday’s nine-year low of 1.1753.The single currency remained under pressure after data on Wednesday showed that the annual rate of euro zone inflation fell by 0.2% in December, down from 0.3% in November. It was the first fall in the annual rate of inflation since October 2009.The decline in consumer prices added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22.Earlier Friday, data showed that French industrial production fell 0.3% in November, compared to expectations for a 0.3% rise. October’s figure was revised to a 0.7% decline from a previously estimated 0.8% drop.
1. Buy GBP/USD Above 1.5187-TG: 1.5207/1.5237 SL 1.5157
2. Sell GBP/USD Below 1.5109-TG: 1.5089/1.5059 SL 1.5139