IN RECENT days, dollar weakness has set in, allowing cable to recapture the $1.6000 level. But the gains to here seem to have come up against some resistance and volatility meaning the rally to this six week high could be coming to an end. Sellers crept into cable expecting that this trend would soon be finished. Capital Spreads quotes $1.6014-$1.6016 for sterling-dollar.
The euro is trading against the dollar in a tight range, as it’s likely that a lot of traders are looking toward the EU summit later today. Looking at the ten-minute chart, the pair is trading within a bullish channel, which could signal some upside. Look for $1.3955 and $1.3985 after that. Capital Spreads quotes $1.3938-$1.3939 for euro-dollar.
The Australian dollar has rallied strongly in the past couple of weeks, as fears about a hard landing in China have slowly diminished. Today’s CPI figures could well see some of these gains pared back especially if they come in lower than expected. Expectations are for the CPI to slip back, which in turn could prompt a slightly easier tone to monetary policy going forward. CMC Markets quotes Australian dollar-dollar at $1.04719-$1.04726.
Dollar-Canadian dollar is at an interesting point, with the dollar seeing support at parity. However, with investors confident a deal will be reached today to support the euro, spread betters are contemplating whether the greenback will lose ground against the Loonie. Spreadex quotes a spread of Ca$1.0011-Ca$1.0015.
Since suggesting selling sterling- yen at ¥122.0 last week, there have been three opportunities to sell at ¥122.00, which resulted in a 120, 100 and 80 pip falls each time in just a matter of hours. This may well continue to be a profitable play, but note the higher lows of a rising wedge, which may see it pop higher soon. Spread Co offers a spread on sterling-yen of ¥121.22-¥121.30.