Range:1.6069 – 1.6126
GBP/USD closed in New York at $1.6115 after recovering off New York session lows of $1.6086 to $1.6127. The rate squeezed lower in early Asia as the market reacted to a Sky News blog report suggesting Moody’s to place a raft of UK banks on review for a possible downgrade, easing through $1.6100 to an eventual low of $1.6055. The rate bounced back to $1.6105 on suggested Asian sovereign buys, extending the recovery into the European open to $1.6126 as some traders questioned the blog credibility. This recovery was reversed to $1.6070 in early Europe as Moody’s confirmed they have placed 14 UK financial institutions on review for a possible downgrade, based on eventual UK government aid withdrawal. Cable currently hovers around $1.6080.
Range: 1.0493 – 1.0558
AUD/USD opened in Asia this morning at $1.0515 after some heavy selling pressure yesterday, following a weak Chinese PMI and sharp falls in bourses. Renewed pressure greeted traders this morning following comments from SNB’s Jordan that action would be taken to avoid deflation which sent the US dollar rocketing higher at the open against the Swiss Franc. This weighed heavily on the Aussie, with a fall to $1.0480, before encountering macro fund and exporter demand, helping it back through $1.0500. Asian sovereign demand and a strong RBNZ inflation survey buoyed the pair further with a rally to $1.0559, as the kiwi-dollar spiked to $0.7967. Aussie now has demand under $1.0500 from Asian reserve accounts and exporters, with major support seen at $1.0470 (55 day MA), and talk now of stops building on a break of $1.0460.
Range: 1.4013 – 1.4081
EUR/USD closed in New York at $1.4050 after the rate managed to extend its recovery off Monday’s lows of $1.3968 to $1.40697. The rate came under fresh selling pressure into early Asia, with sales from a Japanese name cited for the move from $1.4020 down to lows of $1.40017. The dip quickly attracted demand ahead of $1.4000 with an Asian sovereign, the noted buyer, as the rate recovered. A second wave of sovereign demand took the rate back to $1.4045, with banks holding stops above $1.4070 were noted buyers in the $1.4050/55 area, though upside progress was initially thwarted by good supply from US names. A second challenge eventually exhausted the sell interest, the break of $1.4070, providing the added boost to take the rate to extended recovery highs of $1.40824. The rate was holding back at $1.4060 into early Europe. Traders have reported offers placed from above $1.4080 and extending toward $1.4100, a break to open a move toward $1.4120 ahead of $1.4145/50. Support noted at $1.4035/30 ahead of $1.4000. A break here exposes the 100-dma today at $1.3976, ahead of Monday’s low at $1.3968 (100-dma level Monday).