ECB and BoE hold rates.
CURRENCY TRADING SUMMARY – 9th October (00:30GMT)
U.S. Dollar Trading (USD) fell on Thursday pressured by gains in US equities following a better than expected earnings forecast from Alcoa, improving risk appetite and outlook for recovery. In data specific news, Initial Jobless claims declined by 33k to 521k versus forecasted 545k. US share markets saw the DJIA up by 61.29 (+0.63%) whilst the NASDAQ was also higher by 11.42 points (+0.84%)
The Euro (EUR) rallied higher, supported by a positive reading in German Industrial Production and a decision by the ECB to leave monetary policy unchanged, with President Trichet that current levels were appropriate with it being too early to draw conclusions. Overall the EUR traded with a low of 1.4680 and a high of 1.4817 before closing the day at 1.4788. Looking ahead the German Trade and CPI are scheduled for release.
The Japanese Yen (JPY) traded higher versus the USD with growing confidence that the Japanese Government were unlikely to intervene at current levels. Overall the USDJPY traded with a low of 88.13 and a high of 88.71 before closing the day at 88.41.
The Sterling (GBP) saw the BoE also keep rates on hold, more importantly maintained the current level of asset purchases to 175 billion, although reviewing making the November meeting even more critical. The GBP traded with a low of 1.5948 and a high of 1.6121 before closing the day at 1.6075. Looking ahead, PPI and Trade Balance are out of the UK.
The Australian Dollar (AUD) set another 14 month high for the third consecutive day following an unexpected drop in Unemployment to 5.7% from 5.8%, with 40.6K Jobs growth. Overall the AUD traded with a low of 0.8899 and a high of 0.9090 before closing the day at 0.9062.
Oil & Gold (XAU) Gold soared once more hitting a record high of US$1062.70 as investors continue to take advantage of a weaker dollar. XAU closed up US$11.90 an ounce to US$1056.30. Oil also rose up by US$1.95 to US$71.52.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4481 |
1.4581 |
1.4772 |
1.4844 |
1.4908 |
|
USD/JPY |
87.13 |
87.98 |
88.76 |
89.98 |
90.41 |
|
GBP/USD |
1.5771 |
1.5805 |
1.6050 |
1.6126 |
1.6207 |
|
AUD/USD |
0.8647 |
0.8760 |
0.9045 |
0.9130 |
0.9347 |
|
XAU/USD |
1000.95 |
1015.70 |
1049.50 |
1062.70 |
1100.00 |
|
OIL/USD |
67.28 |
68.55 |
71.05 |
71.43 |
73.04 |
Euro – 1.4772
Initial support at 1.4581 (Oct 5 low) followed by 1.4467 (Oct 2low). Initial resistance is now located at 1.4844 (Sept 23 high) followed by 1.4908 (August 22 ’08 high)
Yen – 88.76
Initial support is located at 87.981 (Jan 23 low) followed by 87.13 (Jan 21 low). Initial resistance is now at 89.88 (Oct 5 high) followed by 90.41 (Sept 03 high).
Pound – 1.6050
Initial support at 1.5805 (Oct 2 low) followed by 1.5771 (Sep 28 low). Initial resistance is now at 1.6126 (Sep 30 high) followed by 1.6207 (23.6% retracement 1.3503 – 1.7043).
Australian Dollar – 0.9045
Initial support at 0.8760 (Oct 5 low) followed by the 0.8647 (Oct low). Initial resistance is now at 0.9130 (Aug 07 ’08 high) followed by 0.9347 (Aug 04 ’08 high).
Gold – 1049.50
Initial support at 1015.70 (Oct 6 low) followed by 1000.95 (Oct 5 low). Initial resistance is now at 1062.70 (08 Oct high) followed by 1100 (Psych Level).
Oil – 71.05
Initial support at 68.55 followed by 67.28.Initial resistance is now at 71.43 followed by 73.04.
