Sterling to take centre stage today
City Index March 21, 2012 12:00 PM
<p>EUR/USD Range: 1.3225-1.3283 Support: 1.3100 Resistance: 1.3300 The euro trades towards the top of the recent range after Athens voted in favour of the legislation […]</p>
The euro trades towards the top of the recent range after Athens voted in favour of the legislation to secure aid for the country, giving the risk trade a boost with hope that Europe’s sovereign debt crisis maybe slowly receding. The single currency traded above the week’s highs of 1.3265 but failed to breach the 1.3300 resistance level. Euro crosses look to be leading the single currency with large flows seen this week in the EUR,CAD,AUD and GBP.
Range: 1.5856 – 1.5896
The UK is likely to take centre stage today with the market hoping for a volatile session. This morning we will get some colour from the BoE with the release of the MPC minutes along with the UK Finance data. The chancellor will deliver the UK budget this afternoon although as usual most details have been leaked. Sterling continues to trade constructively with GBP/JPY approaching 133.00 and cable is above the 200-day moving average at 1.5856.
Despite good buying interest seen yesterday in GBP/AUD and EUR/AUD with the latter breaking 1.2620 the 200-day moving average still holds firm in the AUD/USD at 1.0404. With data limited today I expect the AUD cross theme to dominate proceedings with the 100-day moving average in EUR/AUD at 1.2730, now the initial target.