Euro-Dollar Higher After French CPI
City Index April 30, 2012 1:00 PM
<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
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
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
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.
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