IMF says Greece must step up reform
City Index February 1, 2012 1:00 PM
<p>IMF says Greece must step up reform. Debt-laden and recession hit Greece must accelerate structural reforms and slow down on deficit reduction, the head of […]</p>
IMF says Greece must step up reform. Debt-laden and recession hit Greece must accelerate structural reforms and slow down on deficit reduction, the head of the IMF’s inspection team for Greece was quoted saying, as Athens is now seen needing a bigger package than the E130 billion agreed in October due to further deterioration in the economy since then.
Range: 1.3026 – 1.3086
Euro-dollar closed in New York at 1.3084 after recovering off pullback lows of 1.3042. The rate got an early lift to 1.3091, as recovery extended, but this quickly reversed as the rate became subject to negative cross flows, led by sales of euro-Aussie. The rate squeezed back to 1.3050 and settled back between 1.3060-1.3080 into the Asian afternoon before coming under further pressure ahead of the European open, with the rate pressed to an overnight low of 1.3045. Suggestion that we could see a Greek debt deal announced today, which could make market wary of taking the rate too much lower. Demand in place from 1.3030 and trailing down to 1.2995. Offers remain between 1.3090-1.3000, more seen placed from 1.3120 through to 1.3150.
Range: 1.5707 – 1.5763
Cable closed in New York at 1.5760, having eased away from traded highs of 1.5798 and failing to take out the reported barrier at the figure. Cable buoyancy was seen driven by month end flows as well as a strong corrective pullback in the euro. Although the rate consolidated the recovery between 1.5754-1.5767 in early Asian trade before slipping lower late on to 1.5733 ahead of the European open. The move lower was seen instigated by euro-dollar slippage, back towards Tuesday’s pullback lows. The rate has extended lows to 1.5727 into early Europe. Demand seen to 1.5720, a break to allow for a deeper move towards 1.5700. Resistance remains toward the barrier at 1.5800, with stops at 1.5810-1.5815.
Range: 1,732.87 – 1,740.65
Gold prices continue to hold firm, consolidating last week’s strong gains and hitting seven-week highs yesterday of 1,747.70 in New York trade. The metal continues to be driven by high physical demand out of Asia and firmer oil prices, but the move to the highs was quickly reversed later in the session as euro-dollar fell back on fading risk yesterday. Crude oil also fell back sharply after a strong morning rally which added weight to the metal. Gold slipped back to lows of around 1,726.25 before regrouping and closing the day fractionally higher at 1,737.70. In Asia this morning the markets have been relatively quiet with the metal trading in a 1,734.80-1,740.80 range. Today’s support is seen at 1,726.25 and 1,716.50, with resistance at 1,747.70 and 1,756.30.
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