FOMC rate decision, unchanged expected at 0.25%

<p>FOMC rate decision, unchanged expected at 0.25%. FOMC Economic projections at 19.00, things have improved since the last report especially in payrolls, as the US […]</p>

FOMC rate decision, unchanged expected at 0.25%. FOMC Economic projections at 19.00, things have improved since the last report especially in payrolls, as the US econ has been more resilient than expected by many 19.15 Bernanke will speak.
EUR/USD
Range: 1.3186 – 1.3206
Support: 1.3180
Resistance: 1.3210

Euro-dollar closed in NY at 1.3198 the rate recovering from a low of 1.3180 into Asian after rate had seen session highs in NY of 1.3219. Rate initially dipped back to 1.31917 before picking up fresh demand, the market risk on tone boosted by the strong results from Apple. The rate traded to a high of 1.32068, the recovery faltering ahead of reported sell interest placed at 1.3210. Rate settled back between 1.3192-1.3200 through the Asian afternoon, the rate coming under fresh pressure into early Europe as this market probed for stops below 1.3190 and holding heavy. Bids are seen at 1.3180 level with more stops below. A break here to open a deeper move toward 1.3160 with bids placed from this level, strengthening into 1.3140-1.3130. Resistance remains in place into 1.3210, a break to expose 1.3219. Offers remain into 1.3220, more from 1.3225 through to 1.3250 (barrier).

GBP/USD
Range: .6131 – 1.6149
Support: 1.6133
Resistance: 1.6150

Cable closed in NY at 1.6144, the rate having recovered from a pullback low of 1.6127 after extending recent highs earlier in the day to 1.6164. The rate consolidated its recent recovery, trade through the Asian session contained within a range of 1.6136-1.6151, with early sales into Europe retesting the overnight low in tandem with euro-dollar. Euro-sterling’s recovery off Tuesday lows of 0.81435 saw rate push up to 0.8187 in NY which provided a counter to cable’s upside progress, the cross overnight contained by 0.8172-0.8178 with early Europe so far respecting these tight parameters. Bids seen placed at the now marked lows of 1.6133 with interest placed into Tuesday’s pullback low of 1.6127. Stronger demand noted between 1.6120-1.6100. Offers now at 1.6150-1.6155 with stronger levels seen at 1.6164-1.6170.
Gold
Range: 1,641.04 – 1,642.99
Support: 1,634.15
Resistance: 1,649.40

Gold is trading around 1,642 in Asia after another strong rally yesterday from 1,634.15 to 1,649.40 on the back of rising equities and strong earnings from US companies. Trading volumes have been noticeably lower ahead of the 2 day FOMC starting today, but the metal is struggling to break significantly higher as US economic outlook improves and chances of further Fed easing recede. The Indian Akshaya Tritiya festival has failed to produce the usual spur in physical demand with sales down some 20-25% from last year largely due to the already high price for the metal. On the other side of the coin firming crude prices have added some support to the metal as have European debt worries, with Spain, Italy and the Netherlands continuing to attract focus. Today’s support is seen at 1,634.15 and 1,623.35 with resistance up at 1,649.40 and 1,657.50.

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