Closed in NY at $1.3560 and opened gap down at $1.3519 over weekend press reports in the Wall Street Journal and Sydney Morning Herald on Ireland and Greece concerns

<p>EUR/USD Range: 1.3501 – 1.3558 Support: 1.3500 Resistance: 1.3570 Closed in NY at $1.3560 and opened gap down at $1.3519 over weekend press reports in […]</p>

EURUSD
EUR/USD
Range: 1.3501 – 1.3558
Support: 1.3500
Resistance: 1.3570
Closed in NY at $1.3560 and opened gap down at $1.3519 over weekend press reports in the Wall Street Journal and Sydney Morning Herald on Ireland and Greece concerns. The single currency fell to a low of $1.3501 before the Asian equity markets picked up driven by the Shanghai composite. Strong earlier sales from a US money centre bank pressurized the euro but black box bids below $1.3517 and some Asian sovereign demand on approach to the low contained a lot of the supply with short covering then taking the pair back through $1.3540 tripping some stops through $1.3550 to $1.3554. With the market now looking a little short, stops are placed on a break of $1.3560/65 and talk of more through $1.3575. Little to excite traders today but all eyes will be on the Chinese CPI tonight amid talk on the wires of further tightening of China’s reserve requirement ratios.
GOLD

Spot Gold prices slumped again on Friday as the Egypt crisis ended peacefully with President Mubarak stepping down to make way for the military to rule the country in the interim. This led to a sharp fall in Oil prices and took away some of the safe haven attraction for Gold as fears of further Middle Eastern countries following the Egyptian uprising, began to recede. Gold opened at $1363.70 and briefly rose to $1368.75 before confirmation of the news broke and the metal slid sharply to $1354, closing the week around $1357.00. The metal has now failed to make consistent closes above the 100 day moving average currently just under $1365 and this level needs to be exceeded and held now to rekindle the bullish tone of recent months.

 

GBPUSD
GBP/USD
Range: 1.6008 – 1.6076
Support: 1.6000
Resistance: 1.6130
Opened the week at $1.6000, and slipped to $1.5985 before finding some solid investor demand and getting a lift from talk of a large M&A deal, reportedly that GE was buying John Wood for $2.8bn in cash. This prompted a surge in the pound tripping stops through $1.6040 and $1.6060/70 to a high of $1.6077 and is remaining firm ahead of the European open. Euro-sterling slipped from early highs of stg0.8462 to a low of stg0.8423 on the back of the move and early euro-dollar weakness. Talk of some strong trend line support now towards stg0.8410 with Middle Eastern bids lying in wait stg0.8400/10 and a handful of traders now eyeing a reasonable bounce in the cross later today. There is little on the data calendar today with main focus on inflation this week starting with tonight’s Chinese CPI and PPI, and sterling focus on tomorrow’s UK RPI and CPI with the UK retail sales release out on Friday.

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