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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.
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Risk sentiment improves as we await BoE minutes

Article By: ,  Financial Analyst
April 18, 2012 9:00 AM

EUR/USD
Range: 1.3088-1.3142
Support: 1.2980
Resistance: 1.3210

Range trading persists as we trade at yesterday’s lows (1.3089) as I type. The euro is hanging onto gains made since the short squeeze from 1.2995 on Monday buoyed by solid risk sentiment after the IMF increased their forecasts on global growth despite the warning that if any member were to leave the eurozone it could trigger ‘full blown panic’ with potential to rip the entire bloc apart. Although Spain’s bill auction was taken well by the market yesterday the true test will come tomorrow when Spain auction its two and 10-year notes.

GBP/USD
Range: 1.5895 – 1.5945
Support: 1.5850
Resistance: 1.6050

Sterling holds onto slight gains above the 1.5900 handle after a slightly stronger CPI reading yesterday with the broader range of 1.5800-1.6000 remaining intact. The BoE minutes are released this morning at 9.30am GMT with the vote expected to show 9-0 for rates to remain on hold and a 7-2 vote on asset purchases with Posen and Miles voting in favour of increasing asset purchases.
USD/JPY
Range: 80.84-81.42
Support: 80.30
Resistance: 81.80

The JPY was the highlight in the Asian session with USD/JPY breaking above 81.20 trading just above 81.40 with exporter interest taken out at 81.30. Risk sentiment helped cross JPY markets rally after the IMF gave risk a boost with upbeat global growth forecasts. BOJ Governor Nishimura spoke this morning and reiterated that additional steps will be taken to boost the economy of Japan. The market will now await the BOJ semi annual outlook report on the 27th of April.

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