The Dollar was strong against majors due to expectations for good U.S jobs data today. Weekly Jobless Claims increased to 409k vs. 391k previously. Looking Ahead, December Non Farm Payrolls forecast at 175k vs. 39k previously, the Unemployment Rate forecast at 9.7% vs. 9.8% previously and Chief Bernanke Speaks. The Euro continued to trade with a softer tone and fell as low as $1.2965 and currently is holding just above 1.30. Looking ahead, November Industrial Production forecast at -0.2% vs. 2.9% previously. The Dollar continues to remain strong against the Yen but struggling to make move higher, holding above Y83. The Sterling traded at 1.5453 on weak data with December Services PMI dipping to 49.7 from 53.0 previously. The Australian Dollar kept falling as commodities crashed due to speculation and stronger dollar.
EUR/USD: The Euro slide down and is currently trading at 1.3008 levels and had touched near a four month low of 1.2967 levels after the news came that the EU Bank Debt Holders would face losses under new laws in order to limit government losses. Looking ahead today, German Retail Sales m/m, ECB President Trichet speech, Unemployment Rate and Final GDP q/q. Immediate support comes at 1.2970, while resistance comes at 1.3115(21 H4 EMA) followed by 1.3200 (55 H4 EMA). EURINR (58.94) exporters hold for covers and importers cover for Jan at around at current levels. EUR/INR is likely to trade in the range of 58.80 - 59.40 today. Short term and Medium term: Bearish.
GBP/USD: The Pound is currently trading at 1.5454 levels after yesterdays weak Services PMI at 49.7. Immediate resistance comes near 1.5536 levels (21 Daily EMA) followed by 1.5615 (200 Daily EMA) while support at 1. 1.5340(lower Bollinger). GBPINR (70.07) Exporters hold for covers near and importers cover partially for Jan below 70 levels. GBPINR is likely to trade in the range of 69.95 - 70.25 levels today. Short Term and Medium Term: Neutral to slight Bearish.
USD/JPY: USD/JPY is currently trading at 83.28 levels and was stable above 83 levels ahead of today's NFP data. Immediate strong resistance is at 83.50 (100 Daily EMA) while support is at 82.90 levels (55 Daily EMA) followed by 82.65(21 Daily EMA). Yen Exporters are suggested to book Jan and Feb month's exposure around 81 levels and Yen Importers had already been advised to cover their exposures near 84 levels. Medium Term: Maintain Bearishness for the pair Target 80 and below.
AUD/USD: The Aussie is trading at 0.9939 as the commodities crashed. Building Approvals m/m fell to -4.2% vs. 8.2 previous. Immediate support comes at 0.9915 levels (55 Daily EMA) followed by 0.9760 levels (100 Daily EMA) while immediate resistance is at 1.0020 levels (21 Daily EMA) followed by 1.0256 levels (High of 31.12.2010). Exporters are suggested to book Jan and Feb month's exposure at around 1.0200 levels, and Importers can cover their exposure on dips. Medium term: Bullish.
Gold: Gold is currently trading near the support levels at 1370 due to speculation that the CFTC would place limits on speculation. Overall the yellow metal had made a low of 1364.30 and a high of 1370.80. Immediate resistance is at $1400 followed by $1,431 levels while immediate support comes near $1370 levels followed by $1352 levels. Buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index breached 80.50 resistance levels is currently trading at 80.81 levels after yesterday's Weekly Jobless Claims increased to 409k vs. 391k previously and stock markets eased. Looking ahead today, Non-Farm Employment Change is expected better at 159K vs. 39K previously while unemployment rate expected at 9.7% vs. 9.8% previously. There is a support at 79.80 followed by 78.83 levels and resistance is at 81.50 levels.
These views/ forecasts/ suggestions, though proffered with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.