GBP/USD
Range: 1.6018 – 1.6082
Support: 1.5950
Resistance: 1.6080
Not to be ignored from yesterday, Rightmove released an indicator that showed a 3.2% drop in house prices in October. However the market readily ignored the weak figure. That being said the market won’t ignore Tuesdays CPI data, as speculation of stimulus and rate hikes top the pound’s personal list of fundamental concerns. This morning the Pound broke through yesterday’s support of 1.6035, indicating a decline towards 1.5980. On the upside the Pound will no doubt struggle at the 1.6110 area once again.
EUR/USD
Range: 1.3560 – 1.3657
Support: 1.3510
Resistance: 1.3780
Irish officials responded to growing fear of a national fiscal crisis and potential bailout by stating that they had not filed for aid. This reiteration clearly has not filled investors with confidence. In some sense it is making things worse as it is leaving the market in a state of uncertainty. With all this in mind, Prime Minister Cowen is expected to bring the topic up at Tuesday’s meeting of EU leaders. Adding to the European woes, the Portuguese finance minister indicated his country faced similar troubles, and the EU revised Greece’s deficit to GDP ratio up significantly.
AUD/USD
Range: 0.9806 – 0.9893
Support: 0.9740
Resistance: 0.9920
The Aussie Dollar has remained relatively strong vs. the US Dollar in comparison to other currencies, but still is struggling to hold off declines against the greenback. Early on Monday the OECD issued a statement warning the RBA to remain vigilant on inflation pressures. The minutes from the RBA’s November meeting confirmed this. The board judged that the balance of risks (strengthening economic activity and gradually rising inflation), had shifted to the point where a “modest” tightening of monetary policy was prudent.
