After last week’s very poor run of US economic data, fears have escalated towards the potential for another bout of US quantitative easing

<p>After last week’s very poor run of US economic data, fears have escalated towards the potential for another bout of US quantitative easing. This in […]</p>

After last week’s very poor run of US economic data, fears have escalated towards the potential for another bout of US quantitative easing. This in turn is strengthening the safe haven demand for gold and pressurising the US dollar.

Gold
Range: 1,544.30 – 1,547.30
Support: 1,524.10
Resistance: 1,550.50
Spot gold closed last week on a strong footing, reaping the benefits of a very weak dollar following the very poor non-farm payroll data closing the week at 1,542.55. Asian markets have seen some steady further gains in thin trade as several Far Eastern countries observe holidays, with gold edging higher to 1,547.00. Support is now seen at Friday’s low of 1,524.10, with resistance at 1,550.50. Silver failed to match gold’s rally but closed fractionally higher on the day at 36.26 after lows of 35.10. The metal has since picked up in Asia this morning to a high of 36.90. Support is seen at 35.10 with resistance at Thursday’s high of 37.44.
EURUSD
EUR/USD
Range: 1.4608 – 1.4659
Support: 1.4600
Resistance: 1.4660
Euro-dollar closed in New York Friday at 1.4635. With the Asian open the rate gapped lower to begin the week at session lows of 1.4608 before fresh demand emerged into the holiday thinned market. The stop hunt drive took the rate above Friday’s highs to 1.4659, though the move failed to trigger stops at 1.4660/65. The rate slipped to 1.4620 before settling between 1.4620/50 ahead of the European open. Offers remain to 1.4660, with stops at 1.4660/65 and more offers seen at 1.4675/80 and above. Demand is at 1.4620, 1.4600 with larger interest placed between 1.4570/50.
GBPUSD
GBP/USD
Range: 1.6420 – 1.646
Support: 1.6410
Resistance 1.6495

 

Sterling closed in New York on Friday at 1.6430, off post-non-farm payroll recovery highs of 1.6438. At the Asian open cable gapped lower, opening the week around session lows of 1.6410 before recovering, thus allowing a rally to push above Friday’s highs to 1.6460. The rate eased off highs, finding initial support at 1.6425 before recovering to 1.6445/50. Euro-sterling, which had initially eased to 0.8869, recovered back above 0.8900 and pushed on to a high of 0.8918. This recovery weighed back on cable ahead of the European open, taking the rate back to retest earlier lows at 1.6410 before recovering above 1.6430 into Europe. Resistance remains at 1.6450, with interest extending to 1.6460. A break here to open a move towards 1.6495/10. Support at 1.6410/00, stops on break of 1.6390 with fresh demand seen into 1.6375/70 and more at 1.6350.

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