Greek committee approves bailout legislation

Greece’s new bailout legislation was approved by PASOK and new democracy MPs on Parliament’s economic affairs committee Wednesday, after the eurozone decision makers agreed to unleash yet another poisonous rescue package worth €130 billion that will allow the Hellenic country to pay out its most immediate bills and avoid default.
EUR/USD

Range: 1.3232 – 1.3287
Support: 1.3223
Resistance: 1.3278

Euro-dollar closed in New York at 1.3247 after trade was contained within a range of 1.3212-1.3267. The rate picked up an early bid tone into early Asian dealing, edging to an early high of 1.3255 before dropping back to 1.32312 as it tracked Aussie’s dip. Reversal in Aussie was quick, the recovery taking euro-dollar to an eventual high of 1.3265. The rate then settled between 1.3250-1.3260 ahead of the European open.

Offers remain in place above 1.3270, while bids seen positioned into 1.3210 and provide the near term parameters. Greece concerns pushed into the background but are still visible and causing some paring back of risk positions. A very quiet session through Asia and with a fairly light calendar for Thursday trade could remain within recent parameters.

GBP/USD
Range: 1.5651 – 1.5696
Support: 1.5650
Resistance: 1.5700

Cable closed in New York at 1.5668, having been pressed to lows of 1.5648 during the session following dovish BoE minutes. The rate was held between 1.5660-1.5670 in early Asia before dipping to 1.5650 as rate tracked Aussie’s dip to take out barrier interest at 1.0600. The rate recovered through the balance of the session to 1.5678, getting a boost into early Europe to 1.5697 with moves generally driven by euro-dollar. Euro-sterling, which had provided a lot of the negative weight on sterling post BoE minutes, had been driven to a high of 0.8460 in New York, extending the rally to 0.8463 in Asia before settling around 0.8460. Sterling remains bruised following Wednesday’s BoE minutes. Cable offers seen to 1.5700, a break to open a move to 1.5710-1.5715 ahead of 1.5730-1.5735 and 1.5750-1.5760. Support remains in the area between 1.5650-1.5640 with stops below.

Gold
Range: 1,772.54 – 1,775.98
Support: 1,749.50
Resistance: 1,800.00

Gold opened in Asia at 1,776.45 after hitting 2012 highs of 1,781.80 in New York last night. After consolidating the strong gains yesterday from lows of 1,749.30, the rate looks set to test the 1,800 level despite a small drift lower to 1,772.30. There is talk of some 1,800 option expiries today which may well trigger some magnetism towards the cut. The move yesterday has puzzled some analysts as there has been no notable demand, but the view remains that the more QE/bond purchase programmes put into effect, the more gold remains an attraction. The run up from 1,750 was more likely to be technical, with some weak shorts reportedly stopped out, but the mood remains positive. Today’s support is seen towards 1,749.50 and 1,736.75, with resistance at 1,800 and 1,816.70.