Calm before the Greek storm with Italian bond auction a distraction
City Index June 13, 2012 1:00 PM
<p>EUR/USD Range: 1.2472-1.2517 Support: 1.2400 Resistance: 1.2600 The single currency closed in New York towards the higher end of yesterday’s dull range as equity markets […]</p>
The single currency closed in New York towards the higher end of yesterday’s dull range as equity markets put in a solid performance but with no follow through above 1.2525 the Asia market continued to trade in the 50 pip range seen since Monday. It’s all about the Greek election this week-end but I’m not ruling out a short squeeze back to Monday’s Asia high of 1.2670 before the week-end but for today keep a close eye on Spanish 10 year yields as we push towards the 2011 high of 6.83% and the results of the Italian auction at 10am.
Range: 1.5544 – 1.5577
FX markets are trading in tight ranges ahead of the Greek election this week-end with cable trading the recent range the pound is taking its slight direction from EUR/GBP as cable trades towards the top end of the recent 1.5400-1.5600 range as of writing. EUR/GBP continues on its reversal lower with a US name selling being a dominant theme this week. Key levels are supports at 0.8000 and 0.7950 with resistance now seen at 0.8100.
The RBA’s Stevens gave a speech in Brisbane overnight but the market didn’t react to what I consider to be some fairly strong comments as he noted the ‘ real exchange rate is pretty high here ‘ and more importantly ‘ RBA see’s pretty high level of Australian employment ‘ with the latter comment raising questions around the RBA cutting rates further following the 25 basis point cut last month. US retail sales are released at 1.30pm this afternoon with the consensus looking for a -0.1% following the rise of 0.1% last month.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.