Coming Up Today
- CHF SNB Chairman Hildebrand Speaks
- CHF KOF Economic Barometer
- CAD GDP m/m
- USD Advance GDP q/q
Continued moving along its recent uptrend canal, helped by an increasing probability of a fast and enhanced Greek bailout. Officials claim that it could be done within days, and there is talk that Greece is preparing to announce even stricter austerity measures in order to secure even more than 100 billion euros of aid within a 3-year horizon. There is great chance that the short term up trend in the pair will be exarcebated by further squeezing of the already heavy shorting, triggering short covering and boosting the euro higher.
The cable has pretty much followed the eurodollar direction, on increased optimism about containing the debt crisis situation in europe. Furthermore, the pound was helped by reports that show that prices in the UK housing market are on the rise. The increased risk appetite seen yesterday saw the pound rising as high as 1.5364 from as low as around 1.5130 during the previous session. The pair appears to be meeting some significant resistance at 1.5350. A successful penetration of this level could lead to further upside with 1.5380 targetted as a first step. Otherwise, there could be some correction towards the down side with a first support around 1.5300. Support/Resistance 1.53000/1.5350
GOLD & Commodity Currencies
Gold rose by more than 1% overnight, supported by its up trending canal formation, as investors continued to take long positions in gold, as a hedge to the improved but still uncertain economic climate. A jump above the 1165 level is expected to continue this up trend, whereas a drop below could lead to a retrace around 1159 as a first step. In other news, the Aussie climbed higher to as high as $0.9315 from aroun $0.9280, helped by expectation of a hike in Australian policy rate next week.