- Many financial centres closed for Easter holiday
- Nikkei rallied early to a 3 month high but fell sharply after Sumitomo Group issued bleak profit results
- Spot gold rallied slightly after a strong overnight performance from the commodity sector
- US investment bank issues bullish USD analysis
Initial interest was focussed on the EUR/USD, in very thin trading conditions. Stops below 1.3115 were targeted and triggered in early trade. Technical traders buying at the 50% retracement of 1.2455/1.3735 rally helped to underpin the pair. USD/JPY rose to high of 100.70 but could not sustain gains as EUR/JPY selling started to weigh. Most eyes were on the Nikkei which gained early but then fell very hard on news that SMFG had posted an almost $4 billion loss.
Traders refer to good buying interest in USD/JPY at 100 and again at 99.60/70. Sell orders are anticipated between 101.40/70. The EUR continues to look very vulnerable, especially against the GBP and the AUD. Technical resistance remains in the AUD/USD at .7250/65 but a break above there may well see stops triggered and the next resistance above there is at .7425. There was talk of good buying interest in the cable around 1.4600.
The Nikkei finished the day close to flat and the Hang Seng rose 3%. Spot gold rose $1 to $881/oz and Brent crude futures are trading around $54/bbl.
Ranges: EUR/USD 1.3092/1.3166; USD/JPY 100.22/72; USD/CHF 1.1562/1.1622; AUD/USD .7179/.7209; Cable 1.4620/82 and EUR/JPY 131.49/132.30.
Happy Easter to all.
