Markets in consolidation with little news to inspire a break out
City Index July 20, 2012 1:00 PM
<p> EUR/USD Range: 1.2247-1.2282 Support: 1.2150 Resistance: 1.2350 Key event today will be the meeting of European finance ministers. It is expected they will finalise […]</p>
Key event today will be the meeting of European finance ministers. It is expected they will finalise and sign the Memorandum of Understanding with Spain. Once this memorandum is signed, it is expected that the EFSF will make available EUR30bn for Spain by end of July. With risk holding up well I’m thinking the stops at 1.2350 will eventually come into play but I have written my comment (below) yesterday on my pad in capital letters. I need to remind myself of what I write and don’t get sucked in ‘trade the extremes in the 1.2150-1.2350 range’.
Range: 1.5695 – 1.5720
EUR/GBP traded below 0.7800 yesterday with the announcement that the UK authorities have introduced a funding for lending scheme that aims to lower banks funding costs. The PSNB data will be released at 9.30am this morning with the consensus for June being £11.7 billion down from £15.6 billion in May.
Yesterday saw another day of EUR/AUD smashing with rumours European Central Banks are adding AUD to their portfolio’s which adds caution to my bullish view as we approach the target 1.0500 area. My experience tells me if the Central Banks are in we are nearing the end of the move especially as the terms of trade look to be a further reason for the RBA to cut rates as the lifestyle currency keeps on appreciating.
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