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
✖

EU amp Germany Discuss Ltd Spanish Bailout

Article By: ,  Financial Analyst
June 7, 2012 9:00 AM

EU & Germany Discuss Ltd Spanish Bailout. Germany and the European Union officials are exploring options to rescue Spain’s banking sector even though Madrid has not yet requested assistance and resists to be placed under international supervision. “EU officials are also debating the size of the loans needed. Senior Spanish banking executives have put the figure at about €40bn, but EU officials are looking at plans that are at least double that.

 
EUR/USD
Range: 1.2540 – 1.2584
Support: 1.2550
Resistance: 1.2585

Euro-dollar closed in NY at 1.2570, off recovery highs of 1.2587 as risk was given a boost on market chatter of global stimulus plans. The rate initially squeezed down to 1.2565 before getting a fresh lift on release of stronger than forecast Australian employment data. However, despite the decent demand, and the tempting target of stops placed above 1.2600, the rate struggled ahead of the NY high, topping out at 1.25859 as it met straight euro-dollar sales, along with euro-Aussie selling. The rate drifted lower through the balance of the overnight session, touching a low of 1.2557, trading around 1.2564 into early Europe. Markets remain on headline watch for direction, the current risk on tone awaiting some confirmation of risk aid for Spain. Offers remain in place from 1.2585 through to 1.2600, with stops above. Further stops noted above 1.2630 and 1.2650. Support now seen towards 1.2550 and further at 1.2530-1.2520.

GBP/USD
Range: 1.5431 – 1.5492
Support: 1.5404
Resistance: 1.5510

Cable closed in NY at 1.5495, off a late recovery high of 1.5504 (NY high 1.5516). The rate continued its corrective pullback in early Asia, touching a session low of 1.5470 before picking up fresh demand. The recovery back to the opening highs around 1.5494 was seen on the release of strong Australian jobs data as it boosted the underlying risk-on tone. Cable drifted off highs, easing back to earlier lows at 1.5470 before settling between 1.5470-1.5480 into Europe. BoE MPC rate decision today most expect rates to remain on hold but there is speculation we could seen an increase in QE by stg50bln. Resistance placed at 1.5510, 1.5543 with support at 1.5404, 1.5371.
AUD/USD
Range: 0.9881 – 0.9968
Support: 0.9933
Resistance: 0.9972

Aussie closed in NY at 0.9926, with rate correcting back from session highs of 0.9933 after the Aussie dollar had seen decent inflows through Wednesday, initially on release of strong GDP data and then via a generally boosted risk-on tone. The rate continued this correction into early Asian trade, the rate trading down to 0.9875 before recovering to 0.9880 into Australian jobs data release. Another strong set of data spiked the rate to an eventual high of 0.9967 before upside momentum faltered. The rate pulled back to 0.9940 before picking up fresh demand into Europe, edging back above 0.9960. Resistance now looks at 0.9972, 1.0036 and support holding initially at 0.9933, then 0.9869 and further 0.9805.

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