CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Closed in NY at 1 3962 off post Trichet highs of 1 3976

Article By: ,  Financial Analyst
March 4, 2011 2:32 PM
EUR/USD
Range: 1.3950 – 1.3970
Support: 1.3880
Resistance: 1.4000 

Closed in NY at $1.3962, off post Trichet highs of $1.3976, after comments in his ECB presser boosted market expectations that the bank could hike in April. Early Asian demand was seen well supplied in the $1.3965/70 area, the rate topping out at $1.3970 before it settled back between $1.3950/60 post Tokyo fix. Rate currently trades around $1.3958 in early European dealing. Markets in Asia were generally subdued, slipping into the usual pre NFP lethargy. Market forecasts have been moved higher, some seeing 200k plus for the headline NFP at this afternoon’s release of the US employment report. A lot of ECB speakers on the calendar today as well and should be of interest. Euro-dollar resistance said to remain in place between $1.3970/80, tech traders noting trend resistance coming through this area, drawn off highs from Dec 2009 and Nov 2010, a break above to expose $1.4000, with offers seen layered ahead.

 GBP/USD 
Range: 1.6270 – 1.6287
Support: 1.6200
Resistance: 1.6330
Looking at the fundamental developments behind the sterling; the service sector activity report printed weaker than expected, comparisons between oil prices and interest rate pressures eased with crude’s price and BoE Deputy Governor Bean delivered a less than hawkish assessment of the current conditions in the UK. Despite that round of questionable events, though, the 12-month rate forecast for the Bank of England jumped nearly 12 basis points to bring the figure to 87 bps. Rate speculation has been the pound’s speculation foundation; so this could have acted as a launching ground for the sterling. Instead, GBPUSD slid through the session – which is even more unusual given risk trends.
USD/CHF
Range: 0.9314 – 0.9332
Support: 0.9250
Resistance: 0.9400 
There are two unique reactions from the franc to the hawkish ECB rate event. First, the historical correlation between the policy efforts of the European and Swiss central banks would bolster the SNB’s 12-month interest rate forecast (12 bps) to 50 basis points. However, this was not a bullish enough shift to keep the Swiss currency buoyant. The more remarkable effect of this interest rate shift is that there is suddenly greater return to offset perceived risk in the euro-region which temporarily reverses the flow of capital towards the safe haven Swissie.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024