GBP: Opened early Europe at $1.6200, stg0.8041, Cable closed in NY at $1.6152 after the post FOMC rally took rate to $1.6174 before it pulled back to $1.6138. Rate eased to $1.6145 in early Asia before fresh demand emerged as equity markets opened on a positive note, boosting general risk appetite. Cable met initial resistance between $1.6150/60 before extending to $1.6186 on an Aussie led risk-on surge. A brief dip to $1.6176 attracted fresh demand that drove rate to eventual session highs of $1.6206 ahead of the European open. The cable rally continued to trail euro-dollar in early Europe, allowing the cross to edge to stg0.8060 where it met decent resistance. This resistance allowed cable to track euro-dollar’s extended rally, the rate moving through $1.6206 and on to a late morning high at $1.6043. Risk appetite remained in place ahead of the New York open with corrective pullbacks remaining shallow.
EUR: Opened early Europe at $1.3027, Euro-dollar closed in NY at $1.2988 after rate had eased off post FOMC react highs at $1.3002 to $1.2977. Rate drifted to $1.2980 in early Asia but buyers emerged as China equity market opened with a positive tone which provided a fresh boost for risk. Rate was lifted to an initial high of $1.3016, as stops above $1.3015 were triggered. Rate then eased to the NY high of $1.3002 before getting another lift, this time by a resurgent Aussie, which took rate to an extended high of $1.3034 ahead of Europe. Early east European buys triggered stops above $1.3035, then $1.3050, to extend rally to $1.3054. Upside momentum faded and allowed rate to ease to $1.3022 before fresh buying emerged, via euro-yen demand, to take rate back toward $1.3050 late morning. Straight euro-dollar fairly sideline with activity driving moves seen mainly through the crosses. Macro buying of euro-Swiss providing the late morning buoyancy. Upside remains favoured with $1.3200 and $1.3400 noted as targets.
GOLD: Spot gold prices remain in positive territory with no real flows of any significance reported to MNI as of yet. Price action remains tentative after yesterday’s FOMC policy decision, with market participants noting that the precious metal had already priced in some stimulus measures from the US Federal Reserve. Other commodities have extended their gains this morning, particularly oil, but price action in gold has been trading on a more subdued level as some investors await a selection of US data this afternoon. Spot gold is currently trading in the upper end of its range at $1776 a troy ounce, up $8.95 on the session after posting an intra-day high of $1778/oz.
EasyForexNews Research Team