No Greek News, is Good Greek News
The Euro (EUR) staged
a revival on Monday as sentiment improved following a pledge by the G8 leaders
to rejuvenate the global economy and preventing a breakup of the euro zone. Boosted
by bargain hunters and a rally in regional stocks, the single currency rallied
off day lows near 1.2725 to close above 1.2800, aided by Greece’s Political calamity
taking a back seat for a change.
The Japanese Yen (JPY) was
restricted to a tight trading range, with interest and buying appetite seen
near the key 79.00 level, yet capping pressure toward 79.50. The flow in to
EURJPY seemed to over shadow as the cross currency was able to sustain a broader
rally, whilst the AUDJPY sustained it’s resurgence, trading higher toward
78.75, with focus shifting to the key 80.00 barrier, following a failure on
several occasions to break below Fridays 77.50 floor.
The Sterling Pound (GBP) was
also subject to contained moves, as focus shifted to a slate of domestic data
in the later part of the week, led by Tuesday’s CPI release. The Sterling Pound
traded either side of 1.5810 throughout much of the day. The EURGBP traded
slightly higher, moving in to an upper parallel trend channel with a range of
0.8060 – 0.8100
The Australian Dollar (AUD) maintained
its early Asian session rally following an increase in Chinese coal demands, to
rally back above 0.9900 as EU trading remained optimistic in light of muted
Greece talk. Boosted by AUDJPY demand, and rebounding commodities, The Aussie
dollar managed to bounce off lows of 0.9803 to end the trading day near 0.9920
Gold (XAU) found
heavy resistance at $1599 during the trading day, unable to break above a key $1600
an ounce level. $1599.00 reflects a 50% Fibonacci retracement level of the
$1671 (May 1st high) to $1527.10 (May 16th low) decline,
with 38.2% Fibonacci level coming in near $1582.