Range trading prevails with an optimistic risk on feel

<p>The FX markets traded to the lower end of recent ranges yesterday but as the 1.2880 support level held firm in the single currency the […]</p>

The FX markets traded to the lower end of recent ranges yesterday but as the 1.2880 support level held firm in the single currency the tide started to turn. Risk traded positively following comments regarding the fiscal cliff with the S&P reversing morning losses to close up 0.79%. House majority leader Boehner commented that he remains optimistic that the fiscal cliff can be resolved sooner rather than later with President Obama adding that he is hoping for a budget deal before Christmas although I have to say despite the rally we are lacking in firm details. The Beige book was a non event to markets with the current outlook showing expanding economic activity at a measured pace against a prior outlook of modest pace.

EUR/JPY continues to lead the way in a risk on/risk off environment or as some are now calling the cliff on/cliff off trade with 105.50 support holding firm yesterday with today’s data highlights being German unemployment, UK retail sales. The US session brings us GDP, pending home sales and jobless claims.

 


EUR/USD

Supports 1.2930-1.2875-1.2825 | Resistance 1.2980-1.3010-1.3045


USD/JPY

Supports 82.00-81.70-81.30 | Resistance 82.30-82.50-82.85


GBP/USD

Supports 1.6000-1.5965-1.5910 | Resistance 1.6050-1.6075-1.6100

 

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