Dow Jones was sent to its lowest close yesterday
City Index August 11, 2011 3:39 PM
<p>Dow Jones was sent to its lowest close yesterday since September 2010, losing over 200 points in its last hour of trading. A nervous mood […]</p>
Dow Jones was sent to its lowest close yesterday since September 2010, losing over 200 points in its last hour of trading. A nervous mood awaits traders on the open today.
Gold continues to be a one way bet as safe-haven demand for the metal continues. The metal posted new all-time highs again yesterday and again this morning in Asia, with analysts now looking towards 2,500.00. Yesterday’s rally was largely triggered by a run on global bank stocks. Gold this morning topped 1,814.90 in Asia after opening at 1,794.50, but has since eased back below the opening levels to 1,780 as Asian bourses pick up. The CME has announced that it will raise the margin requirement for gold with effect from today, prompting some reasonable profit taking.
Euro-dollar closed in New York at 1.4186, after closing off session lows of 1.4162. The rate was seen easing back from late New York recovery highs of around 1.4235, with the heavy losses on Wall Street prompting an early risk aversion downside move that took euro-dollar through the New York low to 1.4122. The rate recovered with an equity market rebound to 1.4240, easing to 1.4205 before making a late session run higher to 1.4249. Note that selling interest is seen lined up from above 1.4250, initial offers up to 1.4265 and more between 1.4295-1.4200. Support seen back at 1.4125-1.4120, a break to allow for a deeper move towards 1.4105-1.4100 ahead of 1.4065-1.4050.
Sterling closed in New York at 1.6135, off session lows of 1.6123. The rate extended its corrective pullback into Asia, as early markets reacted to the losses on Wall Street on general risk aversion. The bounce back in equity markets allowed cable to recover, the rate edging up through the Asian session to an eventual high of 1.6201. Offers remain in place around 1.6200, a break above to open a move on towards 1.6220-1.6225 ahead of 1.6250 and 1.6280-1.6085. Support now seen at 1.6135-1.6130 and 1.6111, with demand through to 1.6100. A break below here could open a deeper move towards 1.6075-1.6065.
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.