EURUSD
(Bloomberg) The euro touched a three-week high after the currency bloc's finance ministers reached agreement on Greece's debt burden and its funding gap. The 17-nation currency gained against the majority of its 16 main counterparts after euro-area finance chiefs and the International Monetary Fund agreed to cut Greece's interest rates and gave it more time to pay back rescue loans. The yen dropped versus the dollar after Japanese opposition party leader Shinzo Abe reiterated his call for a different scale of monetary easing. We saw the euro pop on the news that a deal has been reached, said Sue Trinh, a Hong Kong-based senior currency strategist at Royal Bank of Canada.The actual announcement of the deal has been somewhat of a relief. The euro climbed to $1.3009, the strongest since Oct. 31, before trading at $1.2985 as of 2:21 p.m. in Tokyo, 0.1 percent higher than the close in New York yesterday. It gained 0.3 percent to 106.78 yen. The yen weakened 0.1 percent to 82.24 per dollar after earlier rising as much as 0.3 percent. Ministers from the 17-nation euro bloc started their meeting at 12:30 p.m. in Brussels yesterday, less than a week after an all-night gathering failed to yield agreement and days after a EU summit broke up without a proposed seven-year budget. The updated aid package lowers interest rates on the loans to Greece and sets new debt targets for the country of 124 percent of GDP in 2020 and below 110 percent in 2022.
Support
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Resistance
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EURUSD
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1.29525
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1.30154
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1.29166
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1.30424
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1.28537
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1.31053
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GBPUSD
(Bloomberg) The pound pared declines against the dollar and euro after Bank of Canada Governor Mark Carney was unexpectedly appointed as the next head of the Bank of England. Carney will take the helm of a British central bank that's preparing to become the most powerful in the world as it absorbs broad new powers to oversee the financial system and prevent another crisis. Ten-year gilts pared an advance that pushed yields to the lowest in almost a week. Sterling earlier slid to a the least in a month against the euro as European finance ministers meet for talks on an updated aid package for Greece. This is sterling supportive in the sense that he has credibility and that he understands that financials are at the core of the U.K. economy, which will help the currency, said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. The issue is that he will try to maintain a weak pound to help the economy rebalance but that is not much different from his predecessor. Sterling fell 0.1 percent to $1.6011 at 4:09 p.m. London time after sliding to $1.5997. It traded at 80.96 pence per euro after earlier dropping to 81.10, the weakest level since 0ct. 24.
(Bloomberg) The pound pared declines against the dollar and euro after Bank of Canada Governor Mark Carney was unexpectedly appointed as the next head of the Bank of England. Carney will take the helm of a British central bank that's preparing to become the most powerful in the world as it absorbs broad new powers to oversee the financial system and prevent another crisis. Ten-year gilts pared an advance that pushed yields to the lowest in almost a week. Sterling earlier slid to a the least in a month against the euro as European finance ministers meet for talks on an updated aid package for Greece. This is sterling supportive in the sense that he has credibility and that he understands that financials are at the core of the U.K. economy, which will help the currency, said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. The issue is that he will try to maintain a weak pound to help the economy rebalance but that is not much different from his predecessor. Sterling fell 0.1 percent to $1.6011 at 4:09 p.m. London time after sliding to $1.5997. It traded at 80.96 pence per euro after earlier dropping to 81.10, the weakest level since 0ct. 24.
Support
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Resistance
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GBPUSD
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1.60064
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1.60451
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1.59816
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1.60590
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1.59424
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1.60977
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GOLD
(Bloomberg) Gold climbed after euro-area finance ministers reached a pact on Greece's debt burden, boosting the euro, and investors raised holdings in exchange-traded products to a record. Silver gained to the highest in almost seven weeks. Spot gold advanced as much as 0.2 percent to $1,751.80 an ounce and traded at $1,749.80 at 12:12 p.m. in Singapore. The metal reached $1,754.65 on Nov. 23, the most expensive since Oct. 15. Holdings in ETPs expanded to 2,606.974 metric tons yesterday, data compiled by Bloomberg show. Cash silver rose as much as 0.4 percent to $34.285 an ounce, the highest level since Oct. 11. The finance ministers, in the region's fourth Greek crisis meeting in two weeks, agreed to cut the country's interest rates and gave it more time to pay back rescue loans, while dismissing calls for a reduction in the amount that's owed. The euro gained as much as 0.3 percent against the dollar. Gold, up 1.7 percent this month, tends to move inversely to the U.S. currency. As investors once again gain confidence in Europe after leaders give Greece another chance, that will help the euro and in turn gold, said Wang Xiaoxi, an analyst at Beijing Capital Futures Co., a unit of the Chinese capital's investment arm. The market may try for a test of $1,800 this week.
Support
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Resistance
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GOLD
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1738.00
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1756.50
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1726.60
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1763.60
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1708.10
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1782.10
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SILVER
(Reuters) Spot silver rose to $34.23 an ounce, its highest since mid-October, before easing to $34.21.
Support
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Resistance
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SILVER
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33.91
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34.31
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33.66
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34.46
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33.26
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34.86
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+CLF13
(Bloomberg) Oil rose from the lowest level in almost a week after European finance ministers reached an agreement on aid for Greece, easing concern that Europe's debt crisis will derail the economic recovery and curb fuel demand. Futures advanced as much as 0.4 percent in New York after slipping 0.6 percent yesterday. Ministers agreed to help Greece manage its debt burden in talks in Brussels that lasted more than 12 hours, a European Union official said. It was the fourth round of discussions by ministers on the Greek crisis in two weeks. U.S. crude inventories probably rose 500,000 barrels last week, according to a Bloomberg News survey of analysts before an Energy Department report tomorrow. Another life line for Greece is supportive for oil, as it shows we are slowly working our way through the euro crisis, said Jeremy Friesen, a commodity strategist at Societe Generale SA in Hong Kong. Improvements in the euro crisis should be positive for the euro and thus could also add some weaker-dollar support to oil prices. Crude for January delivery gained as much as 36 cents to $88.10 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.09 at 1:32 p.m. Singapore time. The contract decreased 54 cents yesterday to $87.74, the lowest since Nov. 21. Prices are down 11 percent this year.
Support
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Resistance
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+CLF13
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87.31
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88.31
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86.79
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88.79
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85.79
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89.79
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@ESZ12
(Bloomberg) The S&P 500 (SPX) fell 0.2 percent to 1,406.29 in New York, after the benchmark index jumped 3.6 percent last week. The Dow Jones Industrial Average slid 42.31 points, or 0.3 percent, to 12,967.37 today. More than 5.3 billion shares traded hands on U.S. exchanges today, or 13 percent below the three-month average, according to data compiled by Bloomberg. We've got a lot of negatives, Peter Sorrentino, who helps manage about $14.6 billion of assets at Huntington Asset Advisors in Cincinnati, said in a telephone interview. There's the backdrop of what's going on in the European Union with the bailouts and recapitalizing the banks. On top of that, we have issues in the U.S. with regard to our fiscal policy. That's just enough reason at this point in time to take risk off the table and wait for more insight and clarity. Congress returns from the Thanksgiving recess this week, seeking a budget deal to avoid $607 billion of automatic tax increases and spending cuts from kicking in next year. While Republicans favor raising federal tax revenue by limiting deductions, Democrats have pushed for higher rates on upper- income earners.
Support
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Resistance
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@ESZ12
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1398.25
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1407.75
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1391.50
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1411.25
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1381.75
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1420.75
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