Even though the draft proposal released by the EU included number of measures that should safeguard the bloc in the future, the fact that disagreements over the implementation of various measures will likely delay any ratification meant that the pair trended lower throughout the session. Also, Spain formally requested EU aid for its banking system and as noted by EU’s Juncker, conditions set out by Brussels will likely include restructuring plans. In terms of technical levels, supports are seen at 1.2419/10 and then at 1.2375. On the other hand, resistance levels are seen at the 10DMA line at 1.2593 and then at 1.2708.
Apart from fretting over the implications that further deterioration of financial conditions and consequent rise in wholesale funding will mean for banks in the UK, market participants paid particular note to a dovish interview in the FT with MPC member Miles today. As a result, the pair trended in tandem with EUR/USD for much of the session and settled with a net loss of around 30 pips. In terms of technical levels, supports are seen at 1.5535 and then at 1.5473. On the other hand, resistance levels at the 10DMA line at 1.5619 and then at 1.5634.
The pair trended lower throughout the session as market participants remained wary of risks posed by the never-ending sovereign debt crisis which in turn prompted another influx into safe haven assets. In terms of technical levels, supports are seen at 79.59 and then at 79.39. On the other hand, resistance levels are seen at 80.35/63 and then at 81.00.