THE TIPSTER HUNTING FOR EURO BULL GAINS
THE euro-dollar pair continues to hold onto ground above the $1.3000 level, but the nerve of the bulls is being tested as discussions in Greece drag on. Recent data has indicated that there are fewer euro shorts than there were at the beginning of the year, so can euro-dollar continue to push higher? Capital Spreads quotes $1.3100-$1.3101.
Aussie dollar-Japanese yen is the ultimate risk barometer and is approaching a major resistance level at ¥82.80. It could be a rocky road, but if it can climb this hurdle then we may see gains back to the ¥85.00 summer 2011 highs. Forex.com currently offers a price of ¥82.70- ¥82.74.
Tuesday’s surprise holding of interest rates by the RBA sent the Australian dollar shooting sharply higher against the US dollar to its highest levels since August last year. It remains to be seen whether it can sustain these gains given that the RBA will likely have to cut rates later this year, in the event of a slowdown in China. CMC Markets’ spread on Aussie dollar-dollar is $1.07691-$1.07698.
Sterling has had a great run in recent weeks as it has rallied almost in a straight line from $1.52 to $1.59. But this bullishness could run out of steam as the market awaits the Bank of England’s interest rate decision tomorrow. Market experts are looking for a hike in the quantitative easing program to £325bn, flooding the market with further money and reducing the value of sterling. ETX Capital quotes sterling-dollar at $1.5810-$15812.
Aussie dollar has been screaming higher since the start of the year. Investors have piled into the high-yielding currency as risk appetite has grown on the expectation of further central bank intervention and an improving outlook for the global economy. Aussie dollar-Canadian dollar has broken above Ca$1.0660 – the high seen back in October and this should now act as support. GFT quotes Ca$1.0750-Ca$1.0752.