Euro dollar opened with a slow tone in Asia

Euro-dollar opened with a slow tone in Asia after yesterday’s rout in equity markets and comments from Eurogroup President Juncker and Belgium Finance Minister Didier Reynders over the Greek debt crisis. Euro-dollar opened at 1.3175 and headed lower on euro-yen selling to a nine-month low of 1.3163, before a weak rally to 1.3217. The rest of the session has seen the rate centred around 1.3200, with bids now seen in the 1.3160-1.3170 area ahead of reported stops from short-term players down through 1.3150. Later news that EU finance ministers had reached an agreement on collateral issues with Finland had a marginal impact, with the euro trading within a 1.3180-3216 range. Offers now start from 1.3230-1.3250, with support at 1.3144 and 1.3090.

Cable closed in New York at 1.5455 and opened in Asia at 1.5432, dragged lower by the euro-dollar which in turn was pushed down by early euro-yen sales out of Tokyo. Cable fell to session lows of 1.5421 before some consolidation appeared in the market with a steady move back up to 1.5463. The move proved to lack momentum, with the pair slipping back again just under the opening levels then stabilising around 1.5445-1.5450 for the remainder of the session. Support is likely towards 1.5420, followed by 1.5333, with resistance now up at 1.5480-1.5485.

Gold had a solid start to the new week with the metal picking up from 1,618.75 in Asia yesterday morning in a steady trot higher to 1,664.65 before closing in New York at 1,658.50. Gold attraction resurfaced as equity markets tanked again and bargain dip buyers appeared in the metal, re-targetting safe haven assets. European debt issues and physical demand out of Asia as the Indian wedding season gets under way, are the main drivers, and are currently out-playing any negativity from falling crude prices. Asian markets this morning have continued to buy with the spot hitting an early high of 1,672.50 before paring back to 1,656. Support is seen at 1,618.75 and 1607 with resistance initially at 1,677 and 1,720.