Not much behind Abu Dhabi – RBS rumours at this stage
City Index March 28, 2012 1:00 PM
<p>Not much behind Abu Dhabi – RBS rumours at this stage. The rumours of the Abu Dhabi Sovereign wealth fund is preparing to buy up […]</p>
Not much behind Abu Dhabi – RBS rumours at this stage. The rumours of the Abu Dhabi Sovereign wealth fund is preparing to buy up to one third of RBS from the UK Government. Reported sightings of Middle East Sovereigns on the bid in cable overnight, added fuel to the fire. One of the bigger banks just issued a brief note on this, saying that there might be some truth in it but it’s still a long way from being a done deal.
Range: 1.3316 – 1.3336
Euro-dollar closed in NY at 1.3312, just off its pullback low of 1.3311 after the rate had been pressed back from earlier intraday highs of 1.33857. The rate picked up fresh demand interest into Asian dealing, the rate opening around 1.3313 and edged higher, the move aided by another round of euro-yen buying, with euro-aussie demand taking over as Japanese euro-yen sales emerged. The rate pressured to highs of 1.3337 before upside momentum faded, the rate easing back to 1.3316 before another round of demand emerged to edge the rate back above 1.3330 into Europe. Decent sell interest has been noted into 1.3350, with weak stops reported through 1.3355-1.3365. A break here to open a move toward 1.3370 ahead of the stronger area between 1.3385-1.3400. Support remains into 1.3310 with minor stops below. Stronger support 1.3290-1.3270.
Range: 1.5929 – 1.5963
Cable closed in NY at 1.5957, off pullback lows of 1.5945 which were seen after the rate had pulled back from extended highs of 1.6002. The rate marked lows at 1.5947 into early Asian trading before stepping its way higher through the session to an eventual high of 1.5964. Sterling retains an underlying buoyant tone though today’s UK GDP Q4 final could provide a knock to this sentiment, any deeper pullback is excepted to be cushioned by the 1.5920-1.5900 area, with a break higher, following on from Tuesday’s brief show above 1.6000, seen needing to clear through 1.6000-1.6020 to boost upside potential. Offers seen at 1.5965-1.5975 ahead of 1.5990 and the mentioned 1.6000-1.6020 area. Bids 1.5945, 1.5920-1.5900.
Range: 1,674.23 – 1,681.68
Gold prices are slipping back again this morning after highs just short of the psychological 1,700 level prompted some profit taking. The metal logged a high yesterday of 1,697.25 before easing back to close at 1,680.70, under the 100 and 200-day MA both around 1,687.50. Further slippage has been seen in Asia as aussie-dollar is pressured by some heavy cross selling. Gold has eased back from early highs of 1,682.15 to 1,676.35 in recent trade. Some concerns are also entering the market over a China slowdown and weakening demand from the country, together with India’s new ruling that import duty would be applied to gold and platinum which has temporarily dampened demand. Support today is seen at 1,655.70 and 1,642.25. Resistance remains at yesterday’s high of 1,697.25, with a break there and through 1,700.