Greek Prime Minister Lucas Papademos is headed for Brussels to negotiate a new bailout for his country

<p>Greek Prime Minister Lucas Papademos is headed for Brussels to negotiate a new bailout for his country after weekend talks with private creditors over a […]</p>

Greek Prime Minister Lucas Papademos is headed for Brussels to negotiate a new bailout for his country after weekend talks with private creditors over a planned debt restricting verged on a deal, and following renewed commitment by the country’s political leaders to pursue fresh reforms.

 

EURUSD

EUR/USD

Range: 1.3136 – 1.3209
Support: 1.3157
Resistance: 1.3216

Euro-dollar closed in New York at 1.3219 after the rate saw an aggressive recovery rally through the afternoon session, off pullback lows of 1.3093 to 1.3235. The rate picked up fresh demand on Asia open as markets reacted positively to weekend reports in the Wall Street Journal, suggesting that the Greek debt deal with its private investors was close to an agreement. The rate eased with main Asia pressing the rate as Asian equity markets opened negative. The apparent failure to get an agreement on Greek debt ahead of today’s EU Summit, as well as German suggestions for greater external controls on the Greek budget meeting objections, was seen placing a negative feel on euro-dollar. Support now seen at 1.3157 and then 1.3120, with resistance looking at 1.3216 and 1.3249.

GBP USD

GBP/USD

Range: 1.5673 – 1.5725
Support: 1.5665
Resistance: 1.5700

Cable closed in New York at 1.5730, off New York recovery highs of 1.5740. The rate initially edged to 1.5737 into early Asian trade as it tracked the early mark up in euro-dollar. The rate reversed off highs into the main Asian session, easing through the balance of the session to a session low of 1.5702. Early Europe added weight, as it did on euro-dollar, taking cable back below 1.5700 to 1.5677. Friday’s strong rally in euro-dollar outperformed cable, which in turn saw the cross move above 0.840 to 0.84095. Trade in Asia saw the rate pare back these gains, easing off from an early high of 0.8407 to 0.8385. Stronger support seen at 1.5665, a break to allow for a deeper move into 1.5650-1.5640 with stops placed below. Resistance now seen into 1.5700 ahead of 1.5720-1.5725 and 1.5740-1.5750.

Gold

Range: 1,726.84 – 1,738.05
Support: 1,714.60
Resistance: 1,756.30

Gold made strong gains last week, spurred by the dovish FOMC meeting. The metal rallied strongly through the 1,700 level and continued to consolidate into the end of the week, closing at around 1,738.60 in New York on Friday night. Early Asian trade this morning saw a move up to 1,741.00 before risk sentiment waned on weekend comments from German FinMin Schaeuble that Europe may refuse the fresh Greek bailout and push Greece into default, if it doesn’t prove itself over reforms. Greek PM Papademos rejected Germany’s idea of a European ‘budget commissioner’ which led to a fall in the euro, despite hopes that Greece would more than likely get a favourable deal with private bondholders on the debt swap this week. Gold has support at 1,714.60 and 1,703.20, with resistance now seen at 1,756.30 and 1,763.35.

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