TRADING
TIPS :
The euro fell to the day’s lows
against the dollar and the yen on Monday after data showing that the
euro area fell back into deflation in February for the first time in
five months cemented expectations for more central bank stimulus.
EUR/USD touched lows of 1.0896, the weakest since February 2 down
from around 1.0915 earlier. The drop in the euro came after Eurostat
said the consumer price index fell 0.2% on a year-over-year basis
after rising 0.3% in January. It was the first negative inflation
figure since September, when consumer prices fell 0.1%, and is well
below the European Central Bank’s target of close to but just below
2.0%. Economists had expected the annual rate of inflation to tick
down to 0.1%. The fall was due in large part to falling energy costs,
which were 8% lower in the year to February compared to the previous
month’s 5.4% drop. Core inflation, which strips out energy costs,
fell to 0.7% from 1.0% in January.
RECOMMENDATION:
BUY
GBP/USD ABOVE 1.4020 TARGET 1.4040 1.4070 SL 1.3990
SELL
GBP/USD BELOW 1.3860 TARGET 1.3840 1.3710 SL 1.3890
RECOMMENDATION:
BUY
EUR/USD ABOVE 1.0940 TARGET 1.0960 1.10990 SL 1.0910
SELL
EUR/USD BELOW 1.0880 TARGET 1.0860 1.0830 SL 1.0910
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