THE TIPSTER
EURO-STERLING rallied hard last week on the back of the UK riots, but ran into a blockade of its own as it approached strong moving average and Fibonacci resistance in the £0.8820-40 area. There also appears to be good support in the £0.8650 area so playing the edges of this range for now, with a stronger preference for the downside, looks a good option. Spread Co offers Euro-sterling at £0.8774-£0.8776
Given the ongoing uncertainty regarding debt management in Europe and the US in addition to poor activity data of late across the developed world, funding currencies like yen, dollar and Swiss franc should stay well supported. More significant, a huge policy decision is expected from Switzerland today regarding euro-Swiss intervention or even possibly a fixed peg for the foreseeable future; whatever the announcement, we are likely to see rapid Swissie liquidation and higher volatility across all pairs as speculators stampede for positions. Alpari (UK) offers euro-Swiss at SFr1.1253-SFr1.1256
With June’s UK jobless claims coming in weaker than expected, investors concerns are beginning to rise that the British economy is slackening. So the fact that today we have not one, but two economics game changers being released from the UK means that traders’ eyes (and trigger fingers) will be set on the sterling-dollar pair. Capital Spreads quotes a price of $1.6392-$1.6394