Investing.com - Financial Markets Worldwide
🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

FX: Safe-Haven Moves Amidst ECB Bond Rumor

ByTalking Forex
Published 08/20/2012, 11:12 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
RMV
-
BMAm
-
EUR/USD

The pair swung between gains and losses for much of the session as market participants struggled to interpret reports by Der Spiegel, which noted that the ECB may announce it will cap bond yields at specific levels once bond purchases resume. Even though the ECB attempted to downplay the report, indicating that no decision has yet been made, the pair remained somewhat resilient and settled the session little changed. In terms of technical levels, supports are seen at 1.2288 and then at the 30-DMA line at 1.2275. On the other hand, resistance levels are seen at 1.2382/88 and then at 1.2402.

GBP/USD
Even though the release of less-than-impressive UK related macro economic data weighed on the pair in early trade, uncertainty surrounding any bailout of Spain lead to another flight to what is generally perceived as safe-haven assets. In turn, this supported the Sterling and the JPY. As a result, the pair managed to eek out small gains and settle the session in minor, positive territory. As noted by Rightmove, UK home sellers cut asking prices by a record 2.4% for the month of August after the Olympic games and an uncertain economic outlook distracted potential buyers. In terms of technical levels, supports are seen at 1.5678/36 and then at the 30-DMA line at 1.5623. On the other hand, resistance levels are seen at 1.5717/39 and then at 1.5750.

USD/JPY
The pair settled lower after the ECB tried to downplay reports that it put an effective cap on bond yields, as a somewhat critical report from the Buba caused another surge in safe-haven trade flows. In terms of technical levels, supports are seen at 79.42/24 and then at 79.14. On the other hand, resistance levels are seen at 79.66/97 and then at 80.02.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.