INR :The Indian Rupee depreciated slightly on Tuesday and erased its early gains. The domestic equities ended in red. There was lack of economic data from the US and that factor too lowered risk appetite in the financial markets. Today, we could witness a bounce back in equities as economic data from China has been positive and may boost risk appetite in the financial markets, thereby boosting equities and commodities.
Euro : The Euro (EUR) struggled to hold above 1.5000 as profit taking in Asia and Oil losses in the US session capped gains. Support at 1.4950 emerged and the pair kept to a tight range for the rest of the day. EUR/JPY selling ahead of 135 Yen is also posing a challenge for the bulls. November German Zew Survey at 51.1 vs. 55 forecast. Overall the EUR/USD traded with a low of 1.4937 and a high of 1.5022 before closing at 1.4980. looking ahead, French Bank Holiday.
Sterling : The Sterling (GBP) was shunted lower at the start of Europe on the back of a Fitch sovereign downgrade warning. The pair spent the rest of the day recovering off lows. September Trade Balance forecast at -6.1bn came in weaker at -7.194bn. EUR/GBP briefly popped above 0.9000 but later slipped back below the key handle. Overall the GBP/USD traded with a low of 1.6600 and a high of 1.6791 before closing the day at 1.6730 in the New York session. Looking ahead, October Claimant Count forecast at 20k vs. 20.8k previously. September ILO Unemployment forecast at 8.0% vs. 7.9% previously.
Yen : The Japanese Yen (JPY) kept to a very tight range around the 90 level as bouts of USD weakness was countered by fresh cross demand. Support at 89.70 is proving solid but attempts above the 90 level are equally short lived. AUD/JPY remains well supported with most of the volatility as usual seen on the GBP/JPY. October Current Account at 1568bn vs. 1530bn forecast. Overall the USDJPY traded with a low of 89.67 and a high of 90.21 before closing the day around 89.80 in the New York session. Looking ahead, September Machine Orders are forecast at 2.9% vs. 0.5% previously.
AUD : The Australian Dollar (AUD) consolidated Monday's gains nicely with dips being well supported and risk appetite remaining strong. October NAB Business Confidence 16 vs. 14 previously. AUD/NZD is a cross in play with the pair trying to break through resistance at 1.2650 on route to the key 1.3000 level. Overall the AUD/USD traded with a low of 0.9254 and a high of 0.9326 before closing the US session at 0.9300. Looking ahead, November Consumer Confidence previously at 1.7%.
Oil & Gold : Oil & Gold (XAU) was quiet but closed above the $1100 level. Overall trading with a low of USD$1096 and high of USD$1109 before ending the New York session at USD$1103 an ounce. Came off on profit taking and the downgrading of storms threatening production. Crude Oil was down -$1.13 ending the New York session at $78.30.