Opened in Asia at 1 3625 after highs yesterday of 1 3689 in NY

  EUR/USD Range: 1.3613 – 1.3663 Support: 1.3570 Resistance: 1.3689 Opened in Asia at $1.3625 after highs yesterday of $1.3689 in NY as a weaker […]


Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

 

EURUSD
EUR/USD
Range: 1.3613 – 1.3663
Support: 1.3570
Resistance: 1.3689
Opened in Asia at $1.3625 after highs yesterday of $1.3689 in NY as a weaker 3 yr US Treasury auction pushed yields higher. Early residual sales were plugged by demand from Asian sovereigns balancing books after further intervention in their respective currencies. Talk in the street of further diversification into Euro assisting demand. Euro-dollar picked up from lows of $1.3613 to a high of $1.3663 as Europe opened for business with the German trade surplus higher than expected pushing the pair to its high.. Offers are placed ahead of $1.3700 from option related accounts with stops placed on a break. Bids lie from $1.3610 down to $1.3590 with talk of further demand towards $1.3570 and $1.3510 ahead of a reported $1.3500 barrier.
Gold
Spot Gold prices rallied yesterday hitting a 3 week high as global inflationary fears helped to fuel safe haven demand for the metal. The rate hike from the PBOC failed to have the usual impact of being read as negative for demand as traders believe demand from China will remain strong on their return to markets following the Lunar new year celebrations today. Prices rallied from $1348.50 at midday yesterday to a high of $1368.10 before settling the day around $1364. Asian markets this morning have seen prices drift around $1362-1366 in subdued but firm trade. Immediate resistance is seen at yesterday’s high of $1368 and $1379 with support at $1345 and $1325.
GBPUSD
GBP/USD
Range: 1.6052 – 1.6083
Support: 1.6000
Resistance: 1.6180
Sterling has largely been ignored in Asia this morning opening at $1.6069 and wrapped in a $1.6049/74 range, slipping in early trade to the low but picking up some upward momentum as Asian sovereign book balancing demand assisted a gentle rally back to a high of $1.6084 before easing back ahead of the European open. Cable is still overall weighed down by euro-sterling strength from yesterday although Asian markets have seen the cross tied into a stg0.8478-0.8500 range. Focus today will be on the UK trade data at 0930GMT ahead of tomorrow’s MPC meeting which has the market tentatively alert for a possible rate hike, which may underpin cable today. UK Jan BRC shop price inflation rose to +2.5% its highest level since Nov 2008 which fits in with the markets wariness.
Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar