25 out of 27 countries approve the fiscal compact

The Fiscal Compact has been ratified by 25 out of 27 countries across the European Union in the first economic summit of the year in Brussels. The United Kingdom and the Czech Republic have ratified the agreement.

 
EUR/USD

Range: 1.3134 – 1.3198
Support: 1.3170
Resistance: 1.3200
Euro-dollar closed in New York at 1.3143, with the rate initially easing in Asia to mark session lows at 1.31336 before picking up fresh demand. A further short covering of short risk positions was seen prompted by Greek Lucas PM Papademos, who said there had been significant progress in Greek PSI talks, with hopes for an agreement before the end of this week. A Financial Times report suggested the eurozone bank’s plan to up their tapping of the ECB’s emergency funding programme by two to three times. The rate pushed to a high of 1.31985 on macro and model demand before settling for the balance of the session between 1.3180-1.3195. Offers remain in place towards 1.3200, a break to open a move towards recent highs at 1.3233-1.3235, with offers above 1.3210, more above 1.3250. Bids at 1.3170 and then at 1.3133-1.3123.

GBP/USD
Range: 1.5701 – 1.5753
Support: 1.5700
Resistance: 1.5750
Cable closed in New York at 1.5704, after recovering off New York session pullback lows of 1.5659. The rate initially marked overnight Asian lows at 1.5701 before edging higher on reported risk short covering. Positive comments regarding the Greek debt talks from PM Papademos, alongside end of month dollar sales expected at the fixes, helped to push rate higher, though the move trailed in euro-dollar’s wake. Cable traded to a session high of 1.5744, extending recent highs, before settling between 1.5730-1.5740 through the balance of the session before coming under pressure into early Europe. This allowed the corrective pullback to extend to 1.5725 before fresh buyers emerged to edge rate back to 1.5740. Cable offers seen to 1.5750, a break to open a move on towards stronger area between 1.5770-1.5780. Support is now seen at 1.5700.

 
Gold
Range: 1,729.68 – 1,741.59
Support: 1,716.50
Resistance: 1,741.00
Gold prices gave back marginal gains yesterday as the market lost risk appetite. Falls in equity markets led initially by bank shares, and softening crude oil prices, all acted to dampen demand, but gold’s fall was seen more on the back of some light profit taking after a seven0week high of 1,741. The metal then lost ground in Europe to 1,716.50 before picking up later in the day again to close at around 1,730. Asia has pulled the metal higher again as hopes build for an imminent solution to the Greek debt deal following comments from the Greek PM and other EU officials. The market reacted with a move up to 1,737.60. Today’s support is at yesterday’s lows of 1,716.50 and 1,703.25, with resistance at 1,741 and 1,756.30.