Time is running out for Greece
City Index February 6, 2012 1:00 PM
<p>EUR/USD Range: 1.3052-1.3144 Support: 1.3000 Resistance: 1.3200 The single currency gapped lower on the open in Sydney after strong US unemployment data on Friday and […]</p>
The single currency gapped lower on the open in Sydney after strong US unemployment data on Friday and a lack of progress on the Greece situation. A solution needs to be in place by midday today but with the market trying to establish what ‘soon‘ actually means in Greece, I doubt a deal will be in place by the close of today. I’m now starting to think that with the 1.3000 support level holding, the market has pretty much priced in a Greek default and a eurozone exit, so if we do get a positive result from Greece (big if) the topside will be in danger of breaking with the market still running short positions.
Range: 1.5763 – 1.5823
Sterling continues to trade with a bid tone despite the dollar’s bid tone within the G10 space, with weekend press pretty much guaranteeing that the BoE will announce another £50 billion of QE when they meet on Thursday. The recent demand for sterling has come from asset purchase demand. EUR/GBP has taken a lot of strain as we approach technical support at 0.8275, with a close below suggesting a target at 0.8150.
USD/JPY traded off the 76.00 level, with a stronger US jobs report on Friday but which saw good demand for the pair. As we approach the 76.80-77.00 level, Japanese exporters look to fade the move. For me this pair will continue to be driven by the cross market and US yields as the debate on low US rates continues with US data of late questioning the Fed’s late 2014 stance.