Spain Needs Up To 62 Bln Euro s To Recap Banks

Spain Needs Up To 62 Bln Euro’s To Recap Banks. A Spanish Government announced Thursday independent assessments consider Spain will need between €16 and €62 billion to recapitalize the nation’s banks.
EUR/USD
Range: 1.2534 – 1.2564
Support: 1.2520
Resistance: 1.2580

Euro-dollar closed in NY at 1.25439, off pressured lows of 1.2532. Risk suffered through the European-NY session as market was made aware of the later action by Moody’s to downgrade 15 major financial institutions, position adjustment ahead of initial Spain bank audit results and Goldman Sachs putting out a short S&P recommendation. Euro-dollar continued its recovery into early Asia, as markets viewed the Moody’s action as not as bad as it could have been, as well as the initial Spain audit showing bank needs around expected levels and well off the E100bln that could be allotted. The rate settled between 1.2552-1.2562 through the Asian afternoon. Resistance seen into 1.2580 ahead of 1.2600-1.2610 and 1.2650 whilst support remains between 1.2540 and the NY low at 1.2532, a break to allow for a deeper move toward 1.2520, with bids from here seen strengthening toward 1.2500 stops below.

GBP/USD
Range: 1.5592 – 1.5620
Support: 1.5580
Resistance: 1.5720

Cable closed in NY at 1.5597, off traded lows at 1.5578 as rate was pulled lower by deeper euro-dollar slippage, with a paring back in risk seen as the main driver. Cable posted an early session low at 1.5594 into Asian dealing before edging back above 1.5600, the recovery continuing through the overnight session to 1.5617, with early Europe extending this move to 1.5621. Resistance was seen at 1.5720-1.5725 a break to open a move toward 1.5638. Stronger offers then seen into 1.5680 ahead of stronger interest placed toward 1.5700. Support around 1.5580, more between 1.5560-1.5550, with stops below. Euro-sterling traded Asia between 0.80395-0.80475 with rate holding heavy into early Europe. Support seen between 0.8032-0.8022 ahead of 0.8012. Resistance 0.8050 ahead of 0.8070 and 0.8090-0.8100.

Gold
Range: 1,561.93 – 1,568.28
Support: 1,552.00
Resistance: 1,580.00

Gold was trading in negative territory yesterday after prices finally gave way to the downside during the previous session. Previous critical support, observed around 1,592 area gave way ahead of yesterday’s U.S. opening, and quickly sent gold tumbling to around 1,565.00. Gold reached a high in Asia of around 1,569.20 before meeting some selling pressure, amid a strong showing from the U.S. dollar across FX markets. The prolonged debt crisis in Europe and the Fed’s decision to hold off on any aggressive stimulus measures has seen gold lose its status as a choice of haven. So far gold has held around 1,562 to the downside, but looks vulnerable should the U.S. dollar extend its gains ahead of the weekend. Resistance is now around 1,580 area, whilst support is gathered around 1,552, just ahead of some moderate options gamma support at 1,550.