Rate holds firm while other rates whipsaw; clears more stops close-in above the market from sellers yesterday on failure to hold
1.3030. Stops and active buying over the 1.3040 area traders say; those were the late buyers I think. Rate appears to be ready to close on the 1.2900 handle; fails into end of day but holds inside range day.

Aggressive sellers likely to try and cap above key 1.3030 area; failure to hold 1.2900 today likely to signal a further break back to 1.2700. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound. Close above 1.3030 needed for further upside until then rallies likely to be sold into support around 1.2620/30 (?).

The USD continues to trade mixed today after US data failed to inspire traders one way or the other. GBP fell to a new traded low of 1.4315 before reversing back to the 1.4370 area in lighter volumes; cross-spreaders continue to work the sell side of the rate into the New York close. Overnight UK data was also benign and remarks somewhat dovish but the rate remains firm on the 1.4300 handle ahead of more US data tomorrow. Traders expect more two-way action near-term so aggressive traders looking to buy the dip under the 1.4380 area remember to be nimble. EURO was unable to score a new low-print in afternoon trade and remained mired around the 1.2880 area after testing both sides of that zone; offers above the 1.2910 area capped the upside while bids around 1l2850 supported.

Rate follows GBP higher and clears stops above the market and scores the 1.3000 handle mid-day but fails into the close; likely spillover from weakness in GBP. Stops and active buying over the 1.3040 area traders say; those were the late buyers I think. Rate appears to be ready to close on the 1.2900 handle; holding 1.2980 area in early New York.

Aggressive sellers likely to try and cap above key 1.3030 area; failure to hold 1.2900 today likely to signal a further break back to 1.2700. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound.

Rate two-way again overnight, opens New York better but reverses into new lows late after Geithner remarks. Technical trade the rule to start the week with cross-spreaders holding GBP firm.

Rate needs to hold above 1.4700 area to keep bulls happy. Statement suggests that the BOE is not happy with a lower GBP. Traders note stops and active buying above the 1.4480 area and the rate rallies to highs above 1.4930 area. Tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number.

Extreme volatility and more two-way action was the rule today as the major pairs whipsawed between highs and lows several times creating havoc for traders across the board. Weaker equities pricing in response to Tres. Sec. Geithner's plan to bail-out the banking sector suggests that USD bulls are not convinced that the plan will work. Geithner's plan was long on rhetoric and short on concrete plans suggesting that more rhetoric will be needed before the trading community swallows the plan; apparently the government believes the more it talks the more work gets done.