Sterling continues to trade on the EURO’s coattails as we await the main even for the UK this week in the form of the release of the MPC minutes and the GDP data
City Index January 25, 2012 2:00 PM
<p>GBP/USD Range: 1.5536 – 1.5580 Support: 1.5350Resistance: 1.5650 Sterling continues to trade on the EURO’s coattails as we await the main even for the UK […]</p>
Range: 1.5536 – 1.5580 Support: 1.5350Resistance: 1.5650
Sterling continues to trade on the EURO’s coattails as we await the main even for the UK this week in the form of the release of the MPC minutes and the GDP data. With a further £75 Billion of QE expected by traders to be added next month and despite the doom and gloom the cable pair holds onto decent gains with the Euro rally. Today traders are questioning whether EURO/£ still has room for a sustained move above 0.8400?
Range:1.2987-1.3030 Support: 1.2880Resistance: 1.3080
As mentioned yesterday the CFTC reported record shorts for the speculative community in the single currency and this could be the main driver for this market with liquidity at a premium as the Chinese celebrate New Year. The pair made a 3 week high yesterday of 1.3053 just shy of the 2012 high of 1.3077 with 1.3130 seen as resistance with it being the former support back in October. Overnight news wasn’t great with EU finance ministers saying the Greek debt deal wasn’t enough with creditors saying they were at their limits to what is acceptable so back they go on February 13th. There is also media speculation that Portugal may need a second bailout.
Range:1.0486-1.0536 Support: 1.0420Resistance: 1.0580
The AUD traded in consolidation mode after making a 3 month high yesterday at 1.0574 but even with the technical picture looking in over bought territory by some traders the dips in the lifestyle currency remain shallow as corporate demand chase this move. A break above the 12 week high could signal a test of 1.0650 noted by many investors as major resistance. Australian Q4 CPI will be released on Wednesday with many looking to this number with respect to the RBA’s thinking to a rate cut in February.
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