Euro-Dollar Higher After French CPI

<p>Euro-Dollar Higher After French CPI. Euro-dollar is extending its momentum today after the French CPI rose by 0.8% month-on-month in March and 2.3% year-on-year, above […]</p>

Euro-Dollar Higher After French CPI. Euro-dollar is extending its momentum today after the French CPI rose by 0.8% month-on-month in March and 2.3% year-on-year, above expectations at +0.6% and +2.1% respectively. Euro was trading higher as we headed into the close of Asian markets, after a choppy trading session on Wednesday where jitters on the euro zone debt markets were on the wires.
Range: 1.3106 – 1.3150
Support: 1.3100
Resistance: 1.3150

Euro-dollar closed in NY at 1.3109 after recovering off a late pullback low of 1.3094. The rate extended its recovery, aided by early euro-yen demand into Asia, providing the early lift to 1.312. The rate dipped back to 1.3105 before picking up stronger demand interest prompted by the release of much stronger than expected Australian jobs data. Buyers took the rate through reported offers at 1.3130 and on to 1.3137. The rate was holding firm into early Europe. Sell interest is reported in place to 1.3150 and should make upside progress sticky, while another notes offers through to 1.3165, with decent sized stops residing above 1.3170. Support 1.3100-1.3090 with stops below, a break to open a deeper move toward 1.3065-1.3050.

Range: 1.5913 – 1.5935
Support: 1.5900
Resistance: 1.5960

Cable closed in NY at 1.5909 after recovering off a late session pullback low of 1.5888, with the corrective rally continuing into Asia as rate edged on to 1.5930. The move up trailed euro-dollar as this latter rate outpaced, which in turn allowed euro-sterling to edge up from early Asian lows of 0.8234 to 0.8249. Both rates were seen holding firm into early Europe, mainly supported by the buoyant tone in euro-dollar. Offers seen placed from 1.5930 through to 1.5940, a break to open a move on toward 1.5950 with minor offers seen here with stops then dotted above through to 1.5965. Further offers are seen mixed in between 1.5960-1.5965, a break to allow for a move on toward 1.5980. Support seen back at 1.5900, a break to allow for a deeper move toward 1.5888, stops then noted on a break of 1.5880.
Range: 1,656.24 – 1,660.26
Support: 1,553.00
Resistance: 1,663.00

Gold continues to consolidate the gains seen on Tuesday with a somewhat subdued session yesterday and in Asia where prices have been tied into a 1,653-1,663 range. Rekindled talk of possible further QE from the US has led to further safe-haven demand this week for the metal along with concerns in the EU over Spanish and Italian debt. The approaching Indian wedding season has also sparked some fresh physical demand for gold. Yesterday’s sharp bounce in Crude oil has also helped to underpin the metal. The Chairman of the GFMS stated that 2013 could see a record high price of over 2,000, but feels the year will see a peak with prices falling back as monetary policy in key economies start to normalize and investment appetite in bullion markets slacken. Support at 1,553 and 1,532 and resistance initially at 1,663 ahead of 1,681.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.