Market Brief

With no significant data events to excite FX markets, today's moves have been largely driven by improving risk sentiment since the G20 meeting. Global equity indices are up 1-2% across the board, gold remains supported above $1105 (having touched a new high of $1111.19), whilst most major and EM currencies have spent the day grinding gradually higher vs. the USD. EURUSD has climbed back above 1.5000 levels, but with few catalysts (other than higher equity markets), the pair has not yet re-tested 26 Oct highs at 1.5063.

The one exception to the trend has been GBP; after spending the morning tracking other currencies higher (hitting a peak of 1.6843), the announcement of Kraft's latest offer for Cadbury Plc. hit the wires and showed the offer of 300 pence per share from 7 Sep had not been raised higher, disappointing some who were anticipating they would increase their bid this time round. Cadbury subsequently rejected this offer, and the GBP has spent the time since the announcement easing lower to trade at 1.6720 last.

Tomorrow's data calendar is again quite sparse; UK BRC retail sales monitor due overnight, with Swedish Industrial Production, Norway CPI, German Final CPI and ZEW economic expectations completing the docket.

Currency Tech

R 2: 1.5100
R 1: 1.5063
CURRENT: 1.4995
S 1: 1.4810
S 2: 1.4700

R 2: 1.7041
R 1: 1.6843
CURRENT: 1.6720
S 1: 1.6405
S 2: 1.6240

R 2: 92.50
R 1: 90.75
CURRENT: 89.90
S 1: 89.60
S 2: 89.20

R 2: 0.9475
R 1: 0.9330
CURRENT: 0.9290
S 1: 0.9090
S 2: 0.9025

R 2: 1.0870
R 1: 1.0800
CURRENT: 1.0560
S 1: 1.0500
S 2: 1.0380