INTERNATIONAL CURRENCY BUZZ :
- Forex – Yen hits day’s highs after Brussels explosions
- Forex -Aussie gains ground after data, Stevens; kiwi holds steady
- Forex-Dollar rises against rivals in risk-off trade
EUR/USD has posted slight losses on Tuesday, as the pair trades at the 112 line in the European session. On the release front, German Ifo Business Climate improved to 106.7 points, beating expectations. German Manufacturing PMI remained steady at 50.4 points, short of the estimate. Eurozone Manufacturing PMI improved to 51.4 points, matching the forecast. In the US, there are no major releases on the schedule.The Eurozone released a host of indicators on Tuesday, including PMIs from the manufacturing and services sectors. German Services PMI improved to 55.5 points, pointing to strong expansion. However, Manufacturing PMI came in at 50.4 points, short of the forecast of 50.4 points. There was better news from German Ifo Business Climate, which improved to 106.7 points, ahead of the estimate of 106.1 and marking a 3-month high. Later in the day, we’ll get a look at Eurozone and German ZEW Economic Sentiment.
The pound dropped against the U.S. dollar on Tuesday, after the release of disappointing U.K. inflation data and as a terrorist attack in Brussels dampened risk sentiment. GBP/USD hit 1.4254 during European morning trade, the pair’s lowest since March 17; the pair subsequently consolidated at 1.4283, declining 0.60%. Cable was likely to find support at 1.4219, the low of March 17 and resistance at 1.4480, Monday’s high.The U.K. Office for National Statistics said the rate of consumer price inflation rose by 0.3% last month, below forecasts for an increase of 0.4% and unchanged from 0.3% in January. Month-over-month, consumer prices edged up 0.2% in February, below forecasts for an advance of 0.4% and following a decline of 0.8% in the prior month.
- BUY GBP/USD ABOVE 1.4300TARGET 1.4320 1.4350 SL 1.4270
- SELL GBP/USD BELOW 1.4240 TARGET 1.4220 1.4190 SL 1.4270