The Dollar rose for a fourth day against a basket of currencies, but pared gains after the Treasury received strong demand for its auction of 30-year bonds at a much lower yield than expected. The greenback was doing better earlier after a U.S. report showed jobless claims fell in the latest week. The Euro fell as low as 1.3164, after recovered to trade at $1.3243 following Fitch's downgrade of Ireland's sovereign rating. The Euro remained under pressure given the continued problems in the euro zone, especially with EU officials now talking the euro lower, as well as the deterioration in global liquidity conditions. The Yen traded at 83.77, not far off a session low around 83.50. The Sterling fell to $1.5769, compared with $1.5809. The BoE said it would keep interest rates on hold at 0.5% and to make no changes to its asset-purchase program. Meanwhile, the Aussies climbed 0.5% to $ 0.9847 after surprisingly strong jobs data. The Bank of Korea also kept rate unchanged at 2.5%.
EUR/USD: The Euro is currently trading at 1.3249 levels. Immediate support comes at 1.3180 levels and then next 1.3000 levels, strong resistance comes near 1.3360 (200 day EMA daily) and 1.3410 (21 daily EMA, Weekly). EURINR (60.04) - Importers can 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 - 60.10 today.
GBP/USD: The Pound is currently trading at 1.5770. 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 1.5640. Exporters are suggested to book Dec month's exposure on spikes, 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 71.35-71.65 today.
USD/JPY: USD/JPY is currently trading at 83.73 levels. Overall it had traded with a low of 83.50 and a high of 84.09 yesterday. BSI Manufacturing Index was at -8.0%, compared to previous at 13%. Looking ahead today Household Confidence expected better at 42.3, than previous at 40.9. Immediate Support is at 83.65 (21 Days 4hrly EMA) while immediate resistance is at 84.30 (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 0.9848 levels. Overall it traded range bound yesterday with a low of 0.9810 and a high of 0.9884. Immediate support comes at 0.9810 levels (21 Daily EMA) while immediate resistance 0.9975 levels. Exporters are suggested to book Dec and Jan month's exposure above 0.99 levels, and Importers can cover their exposure on dips. Medium term: Bullish
Gold: Gold (1389.60) recovered yesterday after a sell offs over past two days. Overall the yellow metal made a low of $1380.40 and high of $1394.64. 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 80 levels after yesterday's Unemployment Claims fell to 421K than previous at 438K. Crude Oil Inventories was -3.8M, compare to previous week at 1.1M. Looking ahead Trade Balance expected -43.5B compared to previous at -44.0B while Prelim UoM Consumer Sentiment is expected at 72.4, compared to previous at 71.6. 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.