Despite negative EURO data and the resignation of SNB chairman Hildebrand, the EUR survived a relatively tame session in NY yesterday. China’s strong trade surplus in December, and German negative yields from yesterday’s auction have so far kept markets calm after the inconclusive Merkel/Sarkozy meeting, despite increasing possibility in analysts and the IMF’s minds that Greece may have to leave the EURO. EUR/USD opened at $1.2765 and traded a tight 1.2760-82 range amid firming Asian bourses, but macro fund names capped the pair along with EUR/NZD sales. GBP/USD edged higher from $1.5450 to $1.5478 as EUR/GBP faded from stg0.8269 to stg0.8250, assisted by stronger UK BRC retail sales data. AUD/USD marched higher from $1.0229 through stops $1.0285/95 to $1.0304 after an early jump on strong building approvals data. NZD/USD broke up through 100 day MA at $0.7890 to a new 2mth high of $0.7941 on fund demand. USD/JPY was consigned to a Y76.79-91 range with euro tight through Y98.05-28. EUR/CHF remains heavy in a chf1.2107-26 range following Hildebrand’s departure. Gold prices are well-supported at $1,600 a troy ounce and are likely to trend higher in the near term. Spot gold is trading at $1,616.68/oz, up $5.68 from its previous close. The negative real interest rate environment and investor worries about the euro-zone debt crisis as bullish factors for gold, which is up 3.3% since the start of the year. Crude futures are trading higher in Asia, sitting around the session best levels. The front-month WTI contract was last trading 40 cents higher at $101.71, having touched a high at $101.75.
EasyForexNews Research Team