Spain Troubles Affect Italian Bonds Yields

<p>Spain Troubles Affect Italian Bonds Yields. The EU debt crisis woes are slowly creeping back this week, with Spain edging closer to needing a bailout […]</p>

Spain Troubles Affect Italian Bonds Yields. The EU debt crisis woes are slowly creeping back this week, with Spain edging closer to needing a bailout and pulling Italy down with it. European markets traded mixed on Thursday and the euro operated in a range between 1.3100 and 1.3165.
Range: 1.3160 – 1.3201
Support: 1.3160
Resistance: 1.3200

Euro-dollar closed in NY at 1.3185, off a late rally high of 1.3213 seen as market reacted to rumours of a strong China GDP. The rate got another lift into early Asia as the rumour mill continued on the expectation of a strong China GDP, the rate trading to a high of 1.3201 into the release. The reading came in below forecasts, which reversed the early risk on moves and saw the rate pressured to lows of 1.3166. Recovery efforts were contained below 1.3180 before the rate settled around 1.3170 through to the European open. The rate has enjoyed decent underlying demand through the week, asset re-allocation cited, countering eurozone peripheral bond concerns and keeping the rate well supported above 1.3100. Bids seen between 1.3160 and 1.3140 ahead of 1.3115-1.3100. Resistance now at 1.3200 and 1.3210-1.3220.

Range: 1.5936 – 1.5968
Support: 1.5930
Resistance: 1.5985

Cable closed in NY at 1.5957, with rate seen coming off its late recovery extension highs of 1.5985 after risk was given a late NY boost on rumours that Chinese GDP would come in strong. This corrective pullback extended to 1.5948 into early Asia before recovering with euro-dollar to 1.5969 ahead of the China data release. The headline figure came in below the forecast, and more significantly below the rumoured level, dented risk appetite and dropped cable back to 1.5938. Recovery efforts remained below 1.5950. Euro-sterling which had been driven to a high in NY of 0.82695 after the rate had posted lows of 0.8227, earlier in the European morning. Support seen into 1.5930 a break to open a deeper move toward 1.5915-1.5900 ahead of 1.5890-1.5880. Resistance 1.5985, stronger at 1.6000-1.6010.
Range: 1,672.04 – 1,676.88
Support: 1,665.00
Resistance: 1,681.00

Gold prices pushed sharply higher yesterday and Asian markets have largely maintained the rise despite a weaker than expected Chinese GDP release. The move higher yesterday was on the back of rising equities, crude oil prices and high expectations of the China GDP release with the metal jumping almost $30 from lows of 1,650.60 to highs of 1,680.25 before closing the day at 1,675.80. The forthcoming Hindu Akshaya Tritiya festival in the last week of April has also sparked some renewed physical demand from India which is adding to the overall bullish tone. Asia has seen gold drift off early highs of 1,677.05 to 1,671.90 on the GDP announcement, but the metal has since recovered to sit around 1,676. Support today is seen at 1,665 and 1,651 with resistance up at 1,681 and 1,686.

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