Spain Announces Further Cuts In Health and Education

Spain Announces Further Cuts In Health and Education. Yesterday Spain announced further cuts in health and education by 10 billion euros. This time no conference press, no staging, no comentaries. Spain government has given up explanations and has announced new reforms aim for more efficiency in the management of major public services by press note released to media.
EUR/USD
Range: 1.3103 – 1.3144
Support: 1.3100
Resistance: 1.3145

Euro-dollar closed in NY at 1.3105 after correcting back from a late recovery high of 1.3133. The rate marked an early low at 1.3100 into Asian trading before recovering, the move up aided by euro-yen demand into the Tokyo fix but main demand emerged as rumours for a strong Chinese trade data release swirled. Reported offers in the area between 1.3145-1.3150 provided the counter with rate settling back around 1.3130 into Europe. Offers remain at 1.3145-1.3150 with stops above, a break to open a move toward 1.3166. Talk in Asia of stops placed around 1.3190 but if triggered expected to meet stronger sell interest placed above 1.3205. Further offers then noted into 1.3250. Support remains on approach to 1.3100, a break to allow for a deeper pullback toward 1.3080-1.3070.

GBP/USD
Range: 1.5892 – 1.5929
Support: 1.5895
Resistance: 1.5950

Cable closed in NY around 1.5897, after correcting back from a late session rally high of 1.5915. The rate edged higher from its Asian opening low, the move up aided by euro-dollar’s euro-yen led rally, with rumoured, then confirmed, strong China traded data providing the added lift to take rate through that NY high and on to a high of 1.5931. The rate retained a firm tone through the balance of the Asian session, with pullbacks meeting support in the 1.5920-1.5915 area. Next resistance seen at 1.5950 ahead of 1.5964 and stronger interest around 1.6000. Support noted at 1.5900-1.5895, stops below 1.5890. A break here to open a deeper move toward 1.5885-1.5880 ahead of 1.5850 and 1.5835-1.5830.
Gold
Range: 1,642.84 – 1,654.46
Support: 1,637.50
Resistance: 1,667.30

Gold is continuing to build higher in Asia, after falling to lows of 1,612.40 last week, and has edged up to highs of 1,654.70 from 1,640.20. Talk of possible further QE from the US continues to assist in underpinning prices along with renewed physical demand from Asia as jewellers who have been on strike in India over proposed import taxes, return to the market. Last Friday’s weaker US Non-farm Payroll release also helped kick start a recovery into the new week despite thinning market conditions due to the European Easter holidays. Investors have been quick to pounce on last week’s sharp drop from 1,681 as have some noted Chinese buyers, and the metal looks poised to grind out further gains on inflation fears following recent data from China. Today’s support comes in around 1,637.50 and 1,627.60 with initial resistance up at 1,667.30 and 1,681.15.