EU summit conclusion: Never trust a politician!

It seems that the early bird catches the worm, or perhaps in this instance it’s the late night party animal. Most moves (what I’m referring to cryptically) seem to happen late in the Asian session, particularly in the last two days anyway. So that leaves us walking in to the European morning faced with an already lapsed series of moves. Being month end of course there is the usual chatter of USD sales needed at each and every fix through the course of the day thanks again to that wonderful SP500 that has hedge fund managers needing to rebalance to counteract the growth over the last month.

Moving briefly onto yesterday's summit conclusion and all I have to say is that if you ever believed a politician, then the joke is on you and never more so than in the last few months. Yesterday provided another round of “we promise to review, get things done and save the world”, of course they’ll get back to us when they’re ready. Interestingly though we have Germany looking like it will take over Europe and a return to the DEM isn’t so far away anymore. More nations (this time the Czech Republic) choose not to ratify the most recent treaty (not that anyone else has yet either) and France won’t even discuss it until after the elections in April. I would dearly love to be a fly on the wall when Angela tells Nick, it’s my way or the highway Frenchy!

Data today has us looking at EUR unemployment, CAD GDP and US consumer confidence along with other headlines of course. None of this will really matter as the market looks for “risk on/off” as per usual.

Levels on the day are a bit if a misnomer, but I shall persevere;

EURUSD: The pair will find support at 1.3080/3130 and continue its topside assault to 1.3250/80 before it finally turns (perhaps on NFP Friday).

GBPUSD: This pair is looking at very firm offers at previous highs around the 1.5750/80 areas, but if the USD sales persist today, 1.5815 is a legitimate target, and that is where faders will start appearing.

AUDUSD: Like all other USD pairs this thing is heading higher and 1.0730 is now also a target of focus looking to reclaim previous historic highs. Dips into 1.0550 will be well supported on the day.

GBPJPY: Is now on the radar and for the first time in a very long time, I’m looking at JPY sales...