The Dollar pulled down as U.S. Treasury prices edged up on Thursday after a violent two-day surge in yields. The benchmark 10-year yield was at 3.22% after climbing to 3.33% on Wednesday, the highest since June. Looking ahead, Weekly Jobless Claims are forecast 425k vs. 436k previously. The Euro rose 0.3% against the dollar to $1.3305, extending its rebound from a one-week low around $1.3180 on set on Wednesday. The Yen fell 0.3 percent to 83.78, pressured by selling from Japanese exporters. The Sterling bounced aggressively off 1.5800. December CBI Orders improved to -3 vs. -15 previously. Looking ahead, BOE Rate Announcement forecast at 0.5%. The Australian dollar rose 0.7% to $0.9863 after employment increased by a net 54,600 jobs last month, surpassing expectations of a 19,000 gain. The New Zealand dollar dropped to a one-week low at $0.7435, shedding about half a cent, after the RBNZ said it expected interest rates to raise less over the next two years than it had previously forecast.
EUR/USD: The Euro is currently trading at 1.3310 levels. Immediate support comes near 1.3265 levels (21 day EMA, 4hr), then next support at 1.3180 levels, strong resistance comes near 1.3360 (200 day EMA daily) and 1.3410 (21 daily EMA, Weekly). EURINR (59.87) -Importers cover near 59.20 - 59.40 levels. Exporters are suggested to book near term exposure in 60.00 - 60.40 regions. Short term and Medium term: Bearish. EUR/INR is likely to trade in the range of 59.70 - 60.05 today.
GBP/USD: The Pound is currently trading at 1.5810. Immediate resistance comes near 1.5820 levels (200 days 4Hrly EMA), while support is expected around 1.5765 levels (100 days EMA, Daily) and next 1.5680. Exporters are suggested to book Dec month's exposure on spikes near 71.20 - 71.50 levels while Importers can cover partially on dips (70.30) levels. Short Term: Bearish; Medium Term: Neutral. GBP/INR is likely to trade in the range of 71.00-71.35 today.
USD/JPY: USD/JPY is currently trading at 83.77 levels and had rallied yesterday after steady buying throughout the day. Overall USDJPY traded with a low of 83.65 and a high of 84.30. Final GDP q/q was strong at 1.1% than previous at 0.9%. Looking ahead today Prelim Machine Tool Orders y/y. Immediate Support is at 83.48 (21 Days 4hrly EMA) while immediate resistance is at 84.39 (21 Weekly EMA). Yen Exporters are suggested to book Dec and Jan month's exposure on dips and Yen Importers can cover their exposure above 84 levels. Medium Term: Maintain Bearishness.
AUD/USD: The Aussie is currently trading at 0.9870 levels. Overall it made a low of 0.9751 and a high of 0.9884, struggling to recover as gold fell yesterday after profit booking. Employment Change was at 54.6K, better than previous at 36.9K while Unemployment Rate was 5.2%. Immediate support comes at 0.9800 levels (100 days 4hrly EMA) while immediate resistance 0.9975 levels. Exporters are suggested to book partial Dec and Jan month's exposure above 0.99 levels, and Importers can cover their exposure on dips. Medium term: Bullish
Gold: Gold (1387.43) declined yesterday after a profit booking. Overall the yellow metal made a low of $1371 and high of $1396.85. Immediate resistance is at $1410 levels followed by $1,431.28 levels while immediate support comes near 1380 levels followed by downside 1350 levels which are a very important support. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 79.77 levels. Crude Oil Inventories was -3.8M, compare to previous week at 1.1M. Looking ahead Unemployment Claims due today expected better at 426K, than previous at 436K. The support level is at 79.45 followed by a strong support at 77.80 levels and resistance is at 80.50 levels. Medium Term : Slightly Bullish
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.