Ranges so far this morning (06:00GMT – 11.30GMT)
EURUSD 1.2750 – 1.2838, GBPUSD 1.4596 – 1.4768, USDJPY 90.75 – 91.50, AUDUSD 0.6548 – 0.6603, EURCHF 1.4960 – 1.5015, EURGBP 0.8664 – 0.8752.
EURUSD (1.2808) – London initially tested the resiliance of buying ahead of the 1.2700 level with it only managing a low of 1.2749 and has settled into a 1.2780/20 range since its little adventure up to 1.2838. German Industrial Production numbers for December came in worse than expected m/m at -4.6% Vs -2.4% forecast.
EURCHF (1.4995) – Tested lower early on but found good support at the 1.4960 level before trying to make headway above the all important 1.5000 level. Failure to take out this level could see us retest support in the 1.4860/80 region before heading towards 1.5200 and potentially 1.5550, but more on that tomorrow.
GBPUSD (1.4660) – London continued where they left off with the cable taking it up to its highs of the day as EURGBP (0.8735) ran down to 0.8664 after triggering sell orders below 0.8700. The sterling continues to look strong heading into lunch time with a move to 1.5000 still expected.
AUDUSD (0.6595) – The AUD has continued to strengthen against the USD and the JPY throughout the morning session in London but still needs to take out resistance at 0.6600 to take the focus away from a retest of the 0.6300 region. Fundamentally, the outlook for Australia is turning positive with signs of a recovery in commodity prices through the latter part of 2009.
