GBP/USD opened in Asia at $1.6296 after a stellar performance yesterday
City Index April 6, 2011 3:15 PM
<p>GBP/USD Range: 1.6295 – 1.6347 Support: 1.6200 Resistance: 1.6400 GBP/USD opened in Asia at $1.6296 after a stellar performance yesterday on the back of a much improved services […]</p>
Spot Gold has held onto the strong gains from yesterday where the market saw a fresh all time high of $1457.30 last night. Asian markets have been relatively sedate despite the turmoil in the yen market, and have so far failed to better the new high, trading a tight $1451.50-$1456.90 range into the European open today. Silver has surpassed yesterday’s high of $39.31 last night with a move to $39.45 at the time of writing. Yesterday’s rallies were partly attributed to a weak ISM release in the US, along with rising Brent Crude prices on the back of MENA tensions. Gold is now looking to $1460 with silver initially targeting a psychological $40. Support for gold is now seen towards $1440 and $1430 with silver at $38.78 and $38.07.
USD/JPY opened in Asia at Y84.86 and leapt to Y85.25 on strong demand from offshore funds in early trade before easing back to Y85.03 on profit taking and some exporter supply. Japanese importers then took charge, with some further fund purchases taking the pair to a high of Y85.53, before more supply from exporters curbed the rally to Y85.24. The market is now clearly gunning for the Y86.00 level with option demand adding fuel amid reports of several players now short of gamma. Having broken through the Y120.00 level yesterday afternoon, euro-yen is now picking up a head of steam opening at Y120.73 and rising sharply on the back of both euro and dollar to a high of Y121.90. Sterling-yen also made solid gains from an opening of Y138.30 to a high of Y139.70. Focus now on the BOJ meeting which some investors fear may lead to further loosening of monetary policy to shore up the Japanese economy.