Fitch 8217 s ratings have upgraded Greece 8217 s long term sovereign credit rating

Fitch’s ratings have upgraded Greece’s long-term sovereign credit rating from restricted default to B-, the lowest level before highly speculative territory, after the Hellenic country completed the private sector involvement (PSI) debt swap.

EUR/USD
Range: 1.3031 – 1.3085
Support: 1.3030
Resistance: 1.3090

Euro-dollar closed in New York at 1.3070 off late recovery highs of 1.3122 after the rate had seen extended lows of 1.3052. The rate opened the main part of Asia at 1.3083 and continued its recovery to 1.3090 before stalling. The rate then reversed tack on strong dollar demand for dollar-yen which pressed the rate down to 1.3057. The rate again met decent demand ahead of 1.3050 prompting suggestions that the level held barrier interest. Recovery to 1.3075 proved short lived as dollar-yen made the push through a reported barrier at 83.25, the dollar demand taking euro-dollar through the 1.3050 level and on to a session low of 1.30308. The rate continues to hold heavy into early Europe, recovery efforts remaining shallow. Bids seen placed between 1.3030-1.3020, a break to open a deeper move to 1.3000 ahead of stronger support at 1.2970. Resistance noted at 1.3090 and 1.3160.

GBP/USD
Range: 1.5650 – 1.5705
Support: 1.5642
Resistance: 1.5690

Cable closed in New York at 1.5707 off an extended recovery high of 1.5748 after the rate had bounced back from a pullback low of 1.5621 on strong fix demand and heavy euro-sterling sales. The rate extended its recovery to 1.5713 into early Asia only to reverse lower as dollar-yen led dollar demand weighed. Cable pressed to an initial low of 1.5674, recovered to 1.5690 before dropping down to 1.5650 as dollar-yen pressured its way through an option barrier at 83.25. Euro-sterling saw lows on Tuesday of 0.8324, having been pressed back from extended highs of 0.8424, with rate consolidating this move between 0.8323-0.8333 through Asia. Sterling has proved to be fairly resilient through the euro’s downside correction, as the market continues to look to buy dips while rate holds above 1.5600 and sell recovery rallies in the cross.

Gold
Range: 1,668.68 – 1,682.24
Support: 1,650.00
Resistance: 1,681.25

Gold prices continue to be weighed down by dollar strength following strong retail sales data out of the US, upbeat outlooks on the US economy from the Fed and no firm pointers towards further QE. The metal has struggled over the last week to gain a foothold back above 1,700 and now sits below the 200-day MA currently around 1,681.25. Asia saw gold slide from earlier highs of 1,682.50 to 1,670.85, but is holding above yesterday’s lows seen after the FOMC of 1,662.00 The move lower is also seen on the back of a surge into equities as risk returned following Fed talk that the recent rise in inflation was temporary thereby reducing the safe haven attraction of the metal. Support is now seen towards last night’s New York low and 1,650. Resistance is initially at the 200 day MA at 1,681.25 and the psychological 1,700 level.

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