Pound Soars into the New Year
CURRENCY TRADING SUMMARY – 31st December (00:30GMT)
U.S. Dollar Trading (USD) had an interesting trading day as strength remained but only against certain currencies. Underpinning the USD was December Chicago PMI jumping to 60.0 vs. 56.1 previously. DJIA +3 points closing at 10548, S& P +1 points closing at 1126 and NASDAQ -2 points closing at 2291. Looking ahead, Weekly Jobless Claims forecast at 460k vs. 452k previously. Market’s closed New Years Day
The Euro (EUR) slipped under 1.4300 after strong Chicago PMI data before rebounding later in the US session. EUR/JPY continued to rally and provided some solid support whilst EUR/GBP plummeted as the Pound surged into Year end. Overall the EUR/USD traded with a low of 1.4273 and a high of 1.4363 before closing at 1.4340.
The Japanese Yen (JPY) was sold pretty much across the board as stocks remained higher and expectations grew that the Yen will weaken more throughout 2010. USD/JPY tracked through resistance at 92.50 to touch 92.80. Overall the USDJPY traded with a low of 91.96 and a high of 92.79 before closing the day around 92.50 in the New York session.
The Sterling (GBP) was the best performer of the day as the sentiment and attitude changed dramatically from Tuesday. The pair on a weak footing below 1.5900 in Europe but then began to rally in the US session and this continued for the rest of the day not only on the major but against the EUR, JPY and AUD. Overall the GBP/USD traded with a low of 1.5831 and a high of 1.6098 before closing the day at 1.6080 in the New York session. Looking ahead, December Nationwide HPI forecast at 0.3% vs. 0.5% previously.
The Australian Dollar (AUD) fell in sympathy with the Euro for most of the day until finding support towards the 0.8900 and rallying quietly in the US session. AUD/JPY provided support as did the continuation of Oil’s rally. Holding the pair back was constant AUD/NZD selling and sluggish Gold. Overall the AUD/USD traded with a low of 0.8900 and a high of 0.8961 before closing the US session at 0.8945.
Oil & Gold (XAU) was on the back foot most of the day as the USD retained a strong footing. Overall trading with a low of USD$1096 and high of USD$1109 before ending the New York session at USD$1097 an ounce. Slightly bearish Inventory Numbers failed to stem the rise in Crude as the pair tested $80 a barrel. Crude Oil was up $0.63 ending the New York session at $79.50.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4218 |
1.4234 |
1.4350 |
1.4458 |
1.4481 |
|
USD/JPY |
91.00 |
91.41 |
92.50 |
92.77 |
93.30 |
|
GBP/USD |
1.5691 |
1.5708 |
1.6080 |
1.6095 |
1.6100 |
|
AUD/USD |
0.8820 |
0.8857 |
0.8960 |
0.8993 |
0.9011 |
|
XAU/USD |
1074.00 |
1079 |
1094.00 |
1108 |
1114.00 |
|
OIL/USD |
75.00 |
78.00 |
79.50 |
80.00 |
82.00 |
Euro – 1.4350
Initial support at 1.4234 (Dec 24 low) followed by 1.4218 (Dec 22 low). Initial resistance is now located at 1.4458 (Dec 29 high) followed by 1.4481 (Oct 2 former low)
Yen – 92.50
Initial support is located at 91.41 (Dec 28 low) followed by 91.00 (Dec 22 low). Initial resistance is now at 92.77 (Dec 30 high) followed by 93.30 (Sept 7 High).
Pound – 1.6080
Initial support at 1.5708 (Oct 13 low) followed by 1.5691 (0.382 of 1.3504-1.7043). Initial resistance is now at 1.6095 (Dec 29 high) followed by 1.6100 (Dec 22 high).
Australian Dollar – 0.8960
Initial support at 0.8857 (Dec 29 low) followed by the 0.8820 (Dec 25 low). Initial resistance is now at 0.8993 (Dec 29 high) followed by 0.9011 (Dec 17 high).
Gold – 1094
Initial support at 1079 (Dec 23 low) followed by 1074 (Dec 22 low). Initial resistance is now at 1108 (Dec 29 high) followed by 1114 (Dec 28 high) .
Oil – 79.50
Initial support at 78.00 (Intraday support) followed by 75.00 (Intraday support). Initial resistance is now at 80.00 (Key Psychological Level) followed by 82.00 (November High).
