Grexit Specter Haunts The Markets

Grexit Specter Haunts The Markets. European markets opened to a quieter week yesterday, following the inconclusive G8 meeting on Saturday. The leaders of G8 countries agreed that there is a need for balancing austerity measures with growth, in order to fight the crisis more effectively, although they failed to propose any specific strategies.
EUR/USD
Range: 1.2783 – 1.2814
Support: 1.2780
Resistance: 1.2845

Euro-dollar closed in NY at 1.2818 after the rate had extended its recovery off session lows of 1.2725, with another IMM close boost taking the rate to late session highs of 1.2825. The rate touched an early high of 1.2820 in Asia, as the market was seen gearing up to take out upside stops above 1.2825, before turning lower, Japanese sales of Aussie-yen post Tokyo fix weighed on risk sentiment and squeezed euro-dollar longs with the added weight taking the rate to an eventual low of 1.2782. The rate recovered off lows, with added demand into early Europe taking the rate up to 1.2795, decent demand sitting into 1.2780, with the late Asian dip attracting buyers looking for another rally to take out upside stops through 1.2845 and 1.2850. However, sell interest noted up to 1.2900.

GBP/USD
Range: 1.5811 – 1.5837
Support: 1.5810
Resistance: 1.5840

Cable closed in NY at 1.5826 after a late session recovery saw rate track euro-dollar’s stronger IMM close inspired rally which took it to late highs of 1.5841. This lagging of euro-dollar’s rise saw euro-sterling extend its recent recovery to 0.8098 but was seen meeting strong hedge fund sell interest placed toward 0.8100. Cable posted early Asian session highs at 1.5832 before turning lower, the drift down to session lows of 1.5811 slower than euro-dollar’s pullback which allowed the cross to ease back to 0.80825, after it too met stiff resistance at 0.8098 in this session. Early Middle East demand was seen into Europe, cable offers remain at 1.5840-1.5850, more at 1.5890-1.5900. Support 1.5810-1.5800 ahead of 1.5790.
Gold
Range: 1,586.35 – 1,594.35
Support: 1,587.28
Resistance: 1,592.75

Gold prices ended slightly higher as the markets consolidated after gains made from the previous week. A rally in risk assets failed to buoy gold prices further higher as signs of recent correlations between gold and “risk-on” assets have declined. Gold prices moved higher in early trading but fell after hitting resistance near 1,600.00. With the lack of major economic news and the lack of any new material developments from the G-8 summit meeting over the weekend, gold prices were traded on a relatively quiet session. Support now seen at 1587.28, followed by 1583.89 and then 1578.42, resistance looks at 1598.22, 1601.61, and a move higher at 1607.08.