London, England -- (SBWIRE) -- 05/06/2011 -- Spread betting provider City Index (http://www.cityindex.co.uk/)takes a look at the activity shaping the FX markets on 28th April 2011.
EUR/USD
Range: 1.4785 – 1.4881
Support: 1.4790
Resistance: 1.4905
Euro Climbs on Dollar’s Pain Though Data and Bank of Portugal Credit Outlook Deteriorate It isn’t a feat to advance against the US dollar; but the euro’s performance through this past 24 hours certainly spelled out strength beyond its reflective performance against the greenback. Climbing against most of its counterparts, the shared currency saw a second slip in German consumer confidence and the Bank of Portugal’s report on credit conditions warn that the 2Q is in for a pinch. It’s hard to explain euro strength.
GBP/USD
Range: 1.6644 – 1.6746
Support: 1.6650
Resistance: 1.6810
British Pound Rallies after an In Line 1Q GDP Reading, Will this Climb Last? For a reading that was essentially in-line with the popular consensus, the advanced reading of UK 1Q GDP certainly had a remarkable impact on the British pound. The sterling rallied sharply across the board after the Office for National Statistics reported a 0.5 percent increase in economic output through the first three months of the year, offsetting the 0.5 percent contraction form the previous reading. Generally, this is not a very robust pace of growth for Europe’s second largest economy; and it certainly doesn’t do much to diminish the risks with the government’s efforts to rein in its debts during a temporary economic slump. That said, services grew the most in four years (0.9 percent) and manufacturing rose 1.1 percent. Growth in the right places allows some room for optimism.
Gold
Range: 1524.35 – 1533.65
Support: 1500
Resistance: 1550
Gold Rallies to a Fresh Record High, But What is the Metal Worth in Euros? Gold was exceptionally strong through Wednesday’s close and into Thursday’s trading session – or was it? As we normally view it, gold hit a record high $1,532; but this has a lot to do with the dollar’s own weakness. When we price the metal in euros, it would still advance; but gains were well off monthly highs (much less record highs). Capital is still comfortable moving from currency to currency rather than finding escape.
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