FX:Dollar gains across the board with risk aversion
Yet again it is an important day for Euro with plenty of data releasing today. Chinese market was closed today for New Year. Euro remained silent mostly in the Asian session. After the CPI data from Australia, it printed a new high of 13 days at 1.3047. But Euro was unable to hold on to this gain and is currently struggling to hold the psychological level of 1.3000. Some encouraging data came out of Germany and market reacted with a new high of 1.3051 just after the results. With entire focus back on the Greek deal, Euro is now trading below and is printing new low 1.2970. The support may be found at this level. The resistance will be seen at 1.3030 and above at 1.3150.
The sterling pound plunged from recent highs. The GDP decreased by 0.1% and Bank of England is expected to introduce quantitative easing. BoE meeting is also scheduled later in the day and market will closely watch it. The pair is currently trading at 1.5585 down 0.25% from yesterday’s close. Resistance will be seen at 1.5630 and 1.5670 area while the support can be seen at 1.5540 and 1.5520.
CPI data from Australia stood at 3.1% below the expected value of 3.3%. The pair printed a high of 1.0543 but retracted back down to 1.0450 area. It is currently trading at 1.0450, down 0.4% from Tuesday’s close. Resistance will be seen at 1.0540 and 1.0600 area. The support will be seen at 1.0435.
US dollar broke the important psychological level of 78 and comfortably trading near the high at 78.19. It is currently up nearly by 0.7% from yesterday’s close. The resistance will be seen at 78.30 and support will be seen at 77.80-78 area.
During the Asian session, Swiss Frank showed little movement but during the European session it shot up to 0.9320 area and printed a high of 0.9327. Currently it is trading around 0.9315 up 0.4% from yesterday’s close. Resistance will be seen at 0.9380 and support at 0.9260 levels. Euro is hovering around 1.21 against the Swiss Frank. Swiss National Bank has clearly expressed its intention of holding floor of 1.2000 for EUR/CHF if it is threatened.
The dollar index is trading near the daily high at 80.30.
