Collapse of Dutch Government A Credit Negative
City Index April 24, 2012 1:00 PM
<p>Collapse of Dutch Government A Credit Negative. The Dutch Prime Minister Mark Rutte and his entire Cabinet resigned on Monday after failing to agree on […]</p>
Collapse of Dutch Government A Credit Negative. The Dutch Prime Minister Mark Rutte and his entire Cabinet resigned on Monday after failing to agree on plan to reduce the country’s deficit as told by EU rules. Rutte talks on a new austerity package collapsed over the weekend. The outgoing PM Rutte will be speaking at 2pm GMT today in the Hague.
Range: 1.3145 – 1.3179
Euro-dollar closed in NY at 1.3156. Trade through Asia was initially contained within a very tight range of 1.3147-1.3158, dipping down to mark session lows at 1.3145 as rate reacted to Aussie’s fall following the weak release of Australian inflation data, before recovering back, touching overnight highs at 1.31602 ahead of the European open. The rate retains a firm tone, though conditions through the overnight session described as very subdued. Offers seen placed between 1.3160-1.3170, a break to open a move on toward 1.3180 ahead of 1.3200. Support seen at 1.3145-1.3140 ahead of 1.3125-1.3120 with further interest noted between 1.3110-1.3100. Stronger demand noted at 1.3070 with corporate demand interest placed from below 1.3050.
Range: 1.6110 – 1.6141
Cable closed in NY at 1.6125 after recovering to 1.6135 in this session and holding above 1.6100 into the close. Trade in a generally subdued Asian session was contained within a tight 1.6110.6130 range and seen struggling to edge higher in tandem with euro-dollar and thus allowing euro-sterling to break out of its overnight range of 0.8155-0.8161 to 0.81675, as this rate extends its recovery off Monday’s lows at 0.8149. Offers remain in place at 1.6130-1.6135 ahead of 1.6150-1.6160, a break to open a move on toward 1.6180. Support remains at 1.6110-1.6100 ahead of stronger interest into 1.6075. For the cross, support remains around 0.8150, a break and clear below to open a deeper move toward 0.8130 ahead of 0.8120. Resistance 0.8180-0.8185 ahead of 0.8200-0.8205.
Range: 1,634.31 – 1638.57
Gold prices remained in a tight range overnight 1,634.31 – 1,638.57 after skidding lower in European trading in reaction to renewed strains in the eurozone with uncertainly of the French presidential election and difficult decisions in the Netherlands. Also poor reports of physical demand from Indian merchants are not helping matters to mount a convincing price rally. Gold also continues to be influenced by the tone of this week’s FOMC rate decision on Wednesday. Support now looks at 1,634.39, 1,626.75 and 1,614.40 with resistance at 1,642.03, 1,646.75 and 1,654.38.
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