The dollar turned lower against the euro on Today morning, and extended losses against the Japanese yen, as movements by the Swiss franc supported the European single currency, with Oil leading the market higher. Weekly Jobless Claims came in at 420k as expected. November New Homes Sales did recover up +5.5% m/m. Looking ahead, not much volatility expected as many of global market closed for Christmas Eve. The Euro was last at $1.3120, off three-week lows around $1.3053 set overnight and against the Swiss franc, it was at 1.2571, having bounced off an all-time low around 1.2440 set this week. Portugal was the latest euro zone member to have its ratings cut, with Fitch downgrading the country's credit rating by one notch to A-plus with a negative outlook. France, however, secured a thumb up from S&P, which affirmed its AAA rating. The Yen broke to the downside falling through support at Y83.50 and hit 1-1/2-week lows around 82.83 overnight. The AUD extended gains above parity as the commodity currency does well given Oil's move higher above $90 levels.
EUR/USD: The Euro is currently trading at 1.3128 levels and it had touched low of 1.3054 levels yesterday. French Consumer Spending m/m had improved to 2.8% vs. previous at -0.6%. Immediate support comes at 1.3055 levels (21days Daily lower Bollinger) and next 1.2970, while resistance comes at 1.3220 levels & next 1.3400 levels. EURINR (59.35) exporters cover near 60.00- 60.40 levels and importers cover for Dec at current levels. EUR/INR is likely to trade in the range of 59.20 - 59.50 today. Short term and Medium term: Bearish.
GBP/USD: The Pound is currently trading at 1.5435 levels and it had touched low of 1.5372 levels. BBA Mortgage Approvals came at 30K vs.31.3K forecasted. Immediate resistance comes near 1.5480 and next 1.5630 levels (200 Days daily EMA), while support comes at 1.5280. GBPINR (69.76) Exporters hold for covers and importers cover for Dec (80%) and Jan (40%) at current levels. GBPINR is likely to trade in the range of 69.65 - 69.95 today. Short Term and Medium Term: Neutral to slight Bearish
USD/JPY: USD/JPY is currently trading at 83.00 levels. Overall USD/JPY had traded with a high of 83.40 and a low of 82.85 yesterday. Immediate Support is at 82.70 while immediate strong resistance is at 83.50 levels (21 Daily EMA) followed by 83.75 levels (100 Daily 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 for the pair
AUD/USD: The Aussie is currently trading above the parity levels at 1.0031 levels. It had remained steady above the parity levels yesterday and had made a high of 1.0066 levels. Immediate support comes at 0.9900 levels (21 Daily EMA) followed by 0.9820 levels (55 Daily EMA) while immediate resistance is at 1.0080 levels. Exporters are suggested to book Dec and Jan month's exposure above 1.0065 levels, and Importers can cover their exposure on dips. Medium term: Bullish
Gold: Gold is currently trading at 1383.10 levels. Overall gold traded yesterday with a low of $1371.93 and high of $1387.95 on a volatile note. Immediate resistance is at $1410 levels followed by $1,431 levels while immediate support comes near $1365 levels. Buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading near the resistance level of 80.42 levels. Personal spending rose 0.4% in November vs. 0.7% previous, Weekly Jobless claims remain around the 420K level, Durable Goods Orders came at 2.4% vs. 1.7% forecasted. There is a support at 79.20 levels and resistance is at 80.52 and next 81.50 levels. Holding above 80.50 would be quite 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.