Dollar is trading weak as Sentiment improved on hopes Japan's nuclear disaster will not worsen. US Core CPI m/m came out better at 0.2% vs. 0.1% expected, Unemployment Claims also came out better at 385K vs. 401K previously. Euro resumed rally against the greenback after successful bond actions by Spain where Spain successfully sold EUR 4.1b of 10-year and 30 year bond yesterday at average yield of 5.162% and 5.875% respectively. Yields were both down from 5.2% and 5.975% as compared to prior auctions, thus indicating that the EU agreement on competitive pact was well received by the markets. GBP Nationwide Consumer Confidence came out weaker this morning at 38 vs. 48 previous. Today the industrial G7 decided to intervene in effective manner into the market by selling the Japanese yen vs. the dollar in order to help the Japanese economy and to reduce the value of the yen. Thus the Japanese central bank will continue to pump liquidity in the financial markets. Japan bonds fell after G7 indicated to intervene in Yen. jumped above 100$ per barrel after UN voted to adopt a resolution to establish a no fly zone over Libya and demands a cease fire with rebels and grants military authority to the US and its allies to protect civilians.
EUR/USD: Euro resumed rally and hovered near 1.4070 levels after successful bond actions by Spain.
Immediate resistance is at 1.4282 levels while Immediate support is seen at 1.4020 levels (21Hrly EMA) followed by 1.3870 levels (21 daily EMA). EURINR (63.44): Exporters can cover partially at current levels for March exposure and importers can cover partially near 62.80 levels. EUR/INR is likely to trade in the range of 63.30 - 63.50 levels today. Short term: Bullish and Medium term: Bearish. Looking ahead German PPI m/m expected to decline while Current account is forecasted to improve.
GBP/USD: GBP is currently trading at 1.6170 levels and touched high of 1.6190 levels. Still downside is contained at 1.6126 levels (21 Daily EMA) and resistance is seen near 1.6200 levels (Fibonacci retracement). GBP/INR (72.85) March month's exporters should cover partially near 73.00 levels and short term importers cover near 72.20 levels. GBPINR is likely to trade in the range of 72.75-73.00 levels today. Short Term: Bullish and Medium term: Bearish
USD/JPY: The pair broke the resistance area of 80.20 and traded near 81.70 levels after G - 7 decided to intervene in the market to sell Yen as an attempt to help the Japanese economy and work to reduce the value of the yen. Yen Exporters are suggested to book March month's exposure partially at current levels while Yen Importers can cover their exposure near 83.00 - 83.40 levels. Short term Bearish and Medium Term: Bullish
AUD/USD: The Aussie recovered to 0.9950 levels after making a low at 0.9780 levels yesterday led by safe heaven flows increased on commodity sector. Immediate support is seen near 0.9878 levels while Immediate resistance is seen near 1.0006 levels (61.8% fibonacci retracement). AUDUSD faces downside pressure in nearer term but still retains its long-term uptrend. Exporters are suggested to book March month exposure near 1.0100 levels, while Importers can cover their exposure partially near 0.9900 levels. Short Term: slight Bearish Medium term: Bullish.
Gold: Gold again rose above the key 1400 mark and trade at 1411.98 levels after making low of 1380. Initial support at 1390 (21 Lower Bollinger and Daily 55 EMA) meanwhile resistance seen at 1420(61.8% fibonacci retracement) and next 1445 levels. Buy on Dips. Medium term: Bullish.
Dollar Index: The US dollar index is currently trading near 76.14 levels, up by 0.13% after positive data released from the economy. Immediate support is at 75.78 levels while immediate resistance is at 76.32 levels followed by 76.55 levels. Short Term: Bearish and Medium Term: 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