Currency Updates:
The Euro (EUR) staged a revival on Monday as sentiment improved following a pledge by the G8 leaders to rejuvenate the global economy and preventing a breakup of the euro zone. Boosted by bargain hunters and a rally in regional stocks, the single currency rallied off day lows near 1.2725 to close above 1.2800, aided by Greece’s Political calamity taking a back seat for a change.
The Japanese Yen (JPY) was restricted to a tight trading range, with interest and buying appetite seen near the key 79.00 level, yet capping pressure toward 79.50. The flow in to EURJPY seemed to over shadow as the cross currency was able to sustain a broader rally, whilst the AUDJPY sustained it’s resurgence, trading higher toward 78.75, with focus shifting to the key 80.00 barrier, following a failure on several occasions to break below Fridays 77.50 floor.
The Sterling Pound (GBP) was also subject to contained moves, as focus shifted to a slate of domestic data in the later part of the week, led by Tuesday’s CPI release. The Sterling Pound traded either side of 1.5810 throughout much of the day. The EURGBP traded slightly higher, moving in to an upper parallel trend channel with a range of 0.8060 – 0.8100
The Australian Dollar (AUD) maintained its early Asian session rally following an increase in Chinese coal demands, to rally back above 0.9900 as EU trading remained optimistic in light of muted Greece talk. Boosted by AUDJPY demand, and rebounding commodities, The Aussie dollar managed to bounce off lows of 0.9803 to end the trading day near 0.9920
Gold (XAU) found heavy resistance at $1599 during the trading day, unable to break above a key $1600 an ounce level. $1599.00 reflects a 50% Fibonacci retracement level of the $1671 (May 1st high) to $1527.10 (May 16th low) decline, with 38.2% Fibonacci level coming in near $1582.
