TRADING TIPS :
- Forex-Dollar rises broadly as euro zone worries dampen sentiment.
- Forex-Dollar posts solid gains on soft U.K., euro zone data.
- Forex-USD/JPY edges lower after Amari comments.
GBP/USD hit 1.5878 during European morning trade, the pair’s lowest since November 2013; the pair subsequently consolidated at 1.5901, dipping 0.01%. Cable was likely to find support at 1.5852 and resistance at 1.6103, Tuesday’s high.Meanwhile, market sentiment remained under pressure amid growing concerns over the outlook for growth in the euro zone after data on Tuesday showed that the bloc’s industrial production declined more than expected in August, while July’s figure was revised down.A separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October, fuelling further concerns over the euro zone’s largest economy.
USD/JPY hit 107.50 during European early afternoon trade, the pair’s high since Monday; the pair subsequently consolidated at 107.20, adding 0.14%.The pair was likely to find support at 106.65, Tuesday’s low and a one-month low and resistance at 107.66, the high of October 13.The yen found support after Japanese Economics Minister Akira Amari said in parliament on Wednesday that the government is not pursuing a policy to intentionally weaken the nation’s currency and that it is necessary to monitor any negative impact from rising import prices. Later in the day, the U.S. was to release data on retail sales, as well as reports on producer prices and manufacturing activity in the New York region.
1. Buy GBP/USD Above 1.5925-TG:1.5945/1.5975 SL 1.5805
2. Sell GBP/USD Below 1.5868-TG:1.5848/1.5818 SL 1.5898