UNSURPRISINGLY, it is sterling that will be in focus today with the Budget scheduled to follow Prime Minister’s Questions this afternoon. This will keep the pressure on sterling against the dollar but the pound will remain susceptible to sharp rallies while it stays above the key Fibonacci technical support level of $1.4850. FX traders should look to sell rallies back towards $1.5120 looking for any moves down to $1.4850. CMC Markets currently offers a spread of three basis points on sterling-US dollar.
Commodity currencies have benefited from the global economic recovery and since an aggressive sell-off in October 2008, the rand has fought back with conviction. With the World Cup closing in, the rand is likely to continue to be buoyant in the medium term. But euro-rand is trading at interesting levels. Technically, the euro is expected to be supported around the R9.70-R9.90 level for a short term retracement. Longer-term traders should look to buy rands at higher levels against the euro. FairFx is offering a spot price of R9.9083.
The Australian dollar-New Zealand dollar has struggled to make new ground beyond the NZ$1.3000 mark as the clash of the high-rate currencies continues. Historically this level has proved too much for the Aussie and it has fallen back to lower levels on several occasions. It looks like history might be repeating itself. Capital Spreads quotes a price of NZ$1.2960-NZ$1.2972.