Coalition Government Talks In Greece Fail
City Index May 8, 2012 1:00 PM
<p>EUR/USD Range: 1.3013 – 1.3059 Support: 1.2988 Resistance: 1.3028 Euro-dollar closed in NY at 1.3052 after the rate had extended its recovery off earlier, eurozone […]</p>
Range: 1.3013 – 1.3059
Euro-dollar closed in NY at 1.3052 after the rate had extended its recovery off earlier, eurozone weekend election result inspired, Asian lows of 1.29552 to 1.3066 in a holiday thinned market. The rate edged higher into early Asia, pushing above the NY high to 1.30671. However, the rate turned lower and the momentum with able to fill Swiss demand at 1.3040 before finding a base at 1.3025 after weak stops were triggered below 1.3030. The rate recovered to 1.3040 with markets awaiting London’s influence on the rate following the weekend elections and the current Greek impasse as parties struggle to form a government. Bids seen placed from 1.3020 through to 1.2990. Offers remain to 1.3070 with stops noted through 1.3070-1.3075 but if triggered to meet heavier offers above 1.3090.
Range: 1.6159 – 1.6189
Cable closed in NY at 1.6194, just off recovery highs of 1.6197, after rate had corrected off Asian lows of 1.6115. The rate extended recovery highs to 1.6199 in early Asian dealing, but reported offers into 1.6200 countered. The rate drifted back to 1.6170 as it tracked euro-dollar moves, though move was provided some buoyancy as euro-sterling, which had seen recovery highs of 0.8080 in NY, off post weekend lows of 0.8037, eased from 0.8066 to 0.80555. Cable trades around 1.6175 into early Europe, the cross holding toward the bottom of its overnight range. Cable offers 1.6200-1.6205 the 1.6215-1.6220 with stops above. Bids 1.6170 ahead of 1.6145-1.6135.
Range: 1,632.48 – 1,638.56
Gold prices have edged lower and prices have been in a narrow range during Asia, grinding off from 1,639 moving in tandem with a weaker euro. Sentiment in gold remains fragile after the changes in European governments again triggered worries about the bloc’s debt crisis, in turn putting pressure on the euro. Prices had picked up from 1,632.30 and staged a recovery to 1,640.90 amid an improving tone in global equity markets after they had endured some heavier losses earlier on in the session. The negative bias in gold remains support which remains at 1,625.00 with a convincing break of 1,625.00 expected to see prices test the low of 1,612.00. 1,662.00 should provide resistance on the upside, with 1,680.00 still regarded as the key level.
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