The G20 has promised a “decisive” solution to the two-year EU debt crisis, without disclosing any major details
City Index October 17, 2011 12:30 PM
<p>EUR/USD Range: 1.3828 – 1.3877 Support: 1.3825 Resistance: 1.3900 Euro-dollar closed in New York at 1.3880 on Friday, off session highs of 1.3894 although […]</p>
Euro-dollar closed in New York at 1.3880 on Friday, off session highs of 1.3894 although it recovered off late pullback lows of 1.3837. Over the weekend, the G20 provided no concrete proposals, with attention turning to next weekend’s October 23 EU Summit with hopes for a programme to be agreed upon. The rate was marked down to 1.3860 on the open before recovering to mark highs at 1.3889, reported stops above 1.3900 providing the early attraction. However, failure to find the momentum to challenge this level saw the rate drift off, easing to lows of 1.3827. Support at 1.3825-1.3820 and then 1.3800 with stops below stronger demand 1.3780. Offers at 1.3900 with stops above at 1.3940-1.3950.
Cable closed in New York at 1.5820 on Friday, with the rate marking Asian session highs at 1.5829 in early trade before sliding to an eventual low of 1.5786. Euro-sterling eased off early highs of 0.8776 to 0.8757, the move tracking general euro slippage, but the rate then snapped back to 0.8783 into early Europe. Cable offers seen placed into 1.5830, a break here to open a move towards 1.5850-1.5855 ahead of strong interest seen placed from 1.5870 and extending to 1.5885. Support at 1.5785-1.5780, 1.5770 ahead of stronger interest at 1.5750.
Gold prices ended the week firmer around 1,680 after opening around 1,639. Friday saw the metal rally from early lows of 1,661.30 to touch 1684 in New York. Ongoing demand from China and India is also adding to the bullish cause, but the market remains cautious ahead of the October 23 summit where ministers are expected to provide some concrete solution to the ongoing EU debt crisis. Asian markets this morning have begun the week on a firm footing, with gold edging up to 1,684.90 before easing back to 1,680. Support is now seen towards 1,661 and 1,653 with resistance at 1,692 and 1,700.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.