Not much action in FX today with the holiday hangover still very much in force. EUR/USD has traded in a 1.4120/1.4040 range, with most of the activity between 9-11 am New York, which is not surprising.
The one notable “trend”, to be generous, has been upticks in gold and CHF as each of these traditional safe-havens have gotten a lift from the aforementioned tensions between India and Pakistan. Given the events of last month in Mumbai, dealers are taking this latest flare-up a bit more seriously than they might ordinarily.
December 17 highs in gold at 881.20 are eyed now as the yellow metal trades at session highs just below $870. The early October highs for gold were $931, for a little perspective. We traded as low as $681 at the end of October. Solid support is down at $829 on pullbacks.
