Euro hurt as Germany tempers hopes for new deal

<p>German leaders are tempering hopes that an upcoming summit would result in a deal that will resolve the continent’s sovereign-debt crisis. Gold Range: 1,665.41 – […]</p>

German leaders are tempering hopes that an upcoming summit would result in a deal that will resolve the continent’s sovereign-debt crisis.

Gold
Range: 1,665.41 – 1,676.57
Support: 1,665.00
Resistance: 1,695.00

 

Gold prices eased back yesterday as the dollar index picked up in the wake of comments from Germany’s Finance Minister Wolfgang Schauble who took the shine off risk by stating that a solution to the EU debt crisis would not be forthcoming at the next summit meeting. The move led euro and stocks lower, impacting the precious metal markets. Gold initially headed high in Asia yesterday, buoyed by crude prices to a high of 1,695.15 from opening levels of 1,680. The metal soon lost its shine however, falling in tandem with the general appetite of risk to lows of 1,664.90 in New York last night, closing around 1,671. Asia saw a small rally up to 1,677 this morning before easing back to 1,670. Support is now seen towards 1,665 and 1,653 with resistance at 1,695 and 1,700.

EURUSD
EUR/USD
Range: 1.3745 – 1.3787
Support: 1.3725

Resistance: 1.3790

 

Euro-dollar closed in New York at 1.3738, off session lows of 1.3726. Early Asia made a weak effort in targeting reported stops sub 1.3720, with the rate meeting decent demand interest at 1.3725-1.3720 which placed a base at 1.3725 before recovering. Asian sovereign demand was noted off the lows. The rate traded to an initial high of 1.3772 before backing off to 1.3760, as RBA minutes came in on the slightly dovish side, but fresh demand quickly emerged to take the rate up to highs of 1.37884. Release of weaker than forecast Chinese GDP data knocked the rate back to 1.3750, recovering back to retest highs before settling between 1.3770-1.3780 ahead of the European open. Offers remain in place at 1.3790-1.3700, further offers at 1.3820 ahead of stronger interest at 1.3840-1.3850. Support at 1.3725-1.3720 and then at 1.3700-1.3690.

GBPUSD
GBP/USD
Range: 1.5746 – 1.5820
Support: 1.5755
Resistance 1.5822

 

Cable closed in New York at 1.5743, off session lows of 1.5733. The rate initially dipped to mark Asian lows at 1.5742 before recovering, the move up aided by reported Asian sovereign buys. The initial rally met resistance ahead of 1.5800, with the rate backing off to 1.5770 as markets reacted to the release of slightly dovish RBA minutes. However, fresh buyers quickly emerged to take the rate on to session highs of 1.5822. The rate settled back between 1.5790-1.5810 into Europe. Offers remain into 1.5822, a break of 1.5830 to expose 1.5850. Support now seen at 1.5755-1.5750, ahead of 1.5735-1.5730 and 1.5700.

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