GBP/JPY the shining star as range trading continues ahead of French and Spanish auctions
City Index April 19, 2012 1:00 PM
<p>EUR/USD Range: 1.3110-1.3133 Support: 1.2980 Resistance: 1.3210 Not much to add here as Asia trades in a 23 point range ahead of the all important […]</p>
Not much to add here as Asia trades in a 23 point range ahead of the all important Spanish and French auctions today at 9.30am and 10am GMT respectively. EUR/USD continue to trades 1.3050-1.3170 with the broader range noted at 1.2950-1.3250. EUR/GBP fell to its lowest level since August 2010 yesterday following the release of the MPC minutes with supports now being eyed at 0.8140 and 0.8070 with the previous support at 0.8220 now seen as the near term resistance.
Range: 1.6015 – 1.6071
Sterling has outperformed in the last 24-hours with important technical levels broken, although we saw a slightly brighter picture in the UK jobs report the main catalyst behind the rise in the queens currency was the ever dovish MPC member Adam Posen switching camps at the last MPC meeting and voting for no further QE. A weekly close above 1.5960 will encourage GBP bulls with 0.8070 noted as the next support/target in EUR/GBP.
The JPY was the highlight in the Asian session yet again with the release of the March trade balance revealing a mixed picture with the initial headline showing a stronger reading only for the seasonally adjusted number to reveal the overall picture is not strong for Japan. The JPY then fell across the board following BOJ governor Shirakawa’s comments that the BOJ is committed to powerful monetary easing.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.