FOMC minutes signal no further hint Of QE3
City Index April 4, 2012 1:00 PM
<p>FOMC minutes signal no further hint Of QE3. Sterling has followed the euro down the road on Tuesday after the FOMC minutes sparked a rally […]</p>
FOMC minutes signal no further hint Of QE3. Sterling has followed the euro down the road on Tuesday after the FOMC minutes sparked a rally in the US dollar, falling from the 1.5970 zone to the boundaries of 1.5900, as FOMC minutes was very much on the hawish side.
Range: 1.3184 – 1.3232
Euro-dollar closed in NY on Tuesday at 1.3233 having been sold down to a session low of 1.3214 post FOMC minutes as more members of this group appeared to back away from further monetary stimulus. The recovery extended to 1.3340 into early Asian dealing before turning lower, the break of 1.0300 in the Aussie led the rate down to 1.3217 before it broke under the NY low as the Aussie took another lurch lower on release of disappointing Australian trade data, euro-dollar dropping down to 1.31832 as more stops were tripped on the break under 1.3200. Recovery efforts ahead of the European open have struggled to get a toe hold back above 1.3200. Offers seen to 1.3205, 1.3220 ahead of stronger interest at 1.3240. Decent demand in place at 1.3180-1.3170 and 1.3140.
Range: 1.5874 – 1.5909
Cable closed in NY at 1.5914 having been sold off to 1.5892 following the dollar demand react to the FOMC minutes as more members of the Committee appeared to move away from further monetary stimulus. The rate eased lower again into early Asian dealing as the dollar again attracted buyers as Asian equity markets followed the Dow’s reactive lead lower. Stops were triggered on the break below 1.5890 to take the rate to lows of 1.5873. Expect demand to remain in place between 1.5875-1.5870, a break to expose stronger support area between 1.5860-1.5840 with stops below. Resistance noted at the overnight recovery high at 1.5914, a break of 1.5920 to open a move toward 1.5940-1.5960 area. Above here and the rate can move toward 1.6000.
Range: 1,641.12 – 1,647.89
Gold prices fell back yesterday as the dollar roared following the release of the FOMC minutes from the latest meeting. Equities were scythed back along with the majority of the commodity sector as broad risk aversion resurfaced, sending the euro-dollar tumbling back through 1.3200. US unemployment is likely to remain above average until the end of 2014 and Central bankers see no reason to extend QE now unless growth prospects deteriorate. Gold metal fell back from early NY highs of 1,681.15 to crater at 1,639. Gold is trading around 1,643.50 in Asia having attempted a rally from opening levels of 1,646, but the move peaked at 1,648.30 before heading back down to 1,640.90. Support today is seen at 1,639 and 1,628 with resistance initially towards 1,648 and 1,660.
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