EFSF the euro zone bailout fund to AA from AAA outlook developing

(EFSF), the euro zone bailout fund, to AA+ from AAA, outlook developing, the agency announced on Monday. The move was expected after the same agency downgraded 9 region’s countries on Friday, including France and Austria, which lost their AAA.
GBP/USD
Range: 1.5317 – 1.5387
Support:1.5330
Resistance: 1.5380
Cable closed Monday’s session at 1.5325, having traded through a US holiday session within a range of 1.5284/1.5330. Rate initially dipped back to 1.5312 into Asia as rate took early direction from euro-dollar, reacting to the downgrading of EFSF by S&P. The early easing was quickly reversed with euro-dollar leading the recovery and taking rate to a high of 1.5371. Euro-sterling pushed up from 0.8262 to 0.8292 which provided a counter to cable upside progress, though this rate was holding firm into Europe, able to extend the recovery to 1.5376 into Europe as markets retain a risk on tone. Cable resistance seen by traders at 1.5375/80 and 1.5410/15. Support seen at 1.5330/25 ahead of overnight low at 1.5312. For euro-sterling, offers 0.8290/00, 0.8315/20. Bids 0.8255/50.

EUR/USD
Range: 1.2665 – 1.2768
Support: 1.2770
Resistance: 1.2660
Euro-dollar closed Monday’s session around 1.2665, having consolidated Friday’s drop to 1.2624 within a range of 1.2626/82, with trade generally subdued due to Monday’s US holiday. Rate initially dipped into Asian dealing Tuesday, marking lows at 1.2648 reacting to the S&P downgrading of the EFSF from AAA to AA+. However, this early move quickly reversed as rumours that Chinese GDP would come in above expectations swirled. Confirmation provided markets with a general risk on tone, the move through 1.2690 triggering stops which provided the added momentum to take rate to overnight highs of 1.2737. Confirmation by S&P of EIB’s AAA rating also aided euro recovery. Sell interest seen by traders in place between 1.2750/70, with bids around 1.2660
Gold
Range:1,643.58 – 1,667.56
Support: 1,636.20
Resistance: 1,662.15
Gold prices picked up on Monday largely reversing the slide of Friday following the EU downgrades in a generally quiet market with the NY market closed. The metal picked up on firming oil prices and equities. The metal opened at 1,639.50 in Asia yesterday and after early falls to1,631.50 picked up steadily to 1,647.05 before closing out the day at 1,643.70. Asian markets have seen further gains with the metal tracking some rise in risk appetite, spurred by a stronger than expected Q4 GDP data out of China. Gold has rallied up to 1,659.75 in recent trade and faces near term resistance at 1,662.15 with a break there allowing a further rally towards 1,678.25. Support now rises to 1,636.20 with a break down there potentially pointing back to Friday’s lows of 1,625.50