The Dollar down to a two-month low against the euro on a perception that the European debt crisis is easing and the ECB could lift interest rates after recent comments by Trichet about the need to keep inflation in check. The euro traded at 1.3661, hovering around $1.37. The Euro could get a further boost if the Fed maintains a cautious view of the U.S. economic recovery after a two-day policy meeting on starts from today. The Sterling struggled to match the rallies in the rest of the market with the 1.6000 level. The Australian dollar fell by around 0.3 percent on weaker than expected consumer price data. China's Yuan ended at a record high versus the dollar on yesterday after it traded above the central bank's mid-point. Taiwan dollar nears a fresh 13-year high against the dollar to 29.049 per dollar from its previous close of 29.420.
EUR/USD: The Euro currently trading at 1.3661 levels after touching a fresh high at 1.3685. January PMI surveys remain strong with Services at 55.2 vs. 54.2 previously and manufacturing at 56.9 vs. 57.1 previously. Looking ahead today, German Consumer Climate expected better. Immediate support comes at 1.3580 (Weekly 50 Fibo) while resistance comes at 1.3738 levels (Daily 61.8 Fibo). EURINR (62.15) exporters should cover at current levels and importers can cover for Jan and Feb at dips. EUR/INR is likely to trade in the range of 62.00- 62.30 today. Short term slight Bullish and Medium term Bearish
GBP/USD: The Pound is currently trading at 1.5993 levels sustaining near 1.6000 levels. Looking ahead today, Prelim GDP q/q expected lower while Public Sector Net Borrowing expected better. Immediate support comes near 1.5950 (Weekly 100 EMA) while resistance at 1.6030 (H4 20 Upper Bollinger) followed by 1.6110 (Daily Upper Bollinger). GBPINR (72.81) Exporters should partially cover at current levels and importers cover partially for Jan near 72 levels. GBPINR is likely to trade in the range of 72.65 - 72.95 levels today. Short Term slight Bullish and Medium Term Bearish
USD/JPY: USD/JPY is trading near 82.44 levels, quite stronger against the greenback. Immediate resistance is at 82.60 levels (21 Daily Middle Bollinger) followed by 83.70 (Daily 21 EMA) while immediate support is at 82.00 (21 Daily Lower Bollinger).Yen Exporters to book Jan and Feb month's exposure around 81 levels and Yen Importers to cover their exposures near 84 levels. Medium Term: Maintain Bearishness for the pair Target 80 and below.
AUD/USD: The Aussie is currently trading near 0.9944 levels with the Central bank outlook for the economy is mixed with concerns for more hikes this year. Immediate support comes at 0.9920 levels (55 Daily EMA) followed by 0.9865 levels (20 Weekly Middle Bollinger) while immediate resistance is at parity levels (20 H4 Upper Bollinger) Exporters are suggested to book Jan and Feb month's exposure towards 1.0100 levels, and Importers can cover their exposure near 0.9800 levels. Medium term: Bullish.
Gold: Gold is currently trading near $1332.20 levels after making a month low of 1329.50 levels yesterday due to reduced safe haven demand. Support for gold is near 1306 levels (200 Daily EMA) and immediate resistance is at 1355.80 (100 Daily EMA) followed by 1373.62 levels (55 Daily EMA). As said earlier, buying on dips is recommended. Medium term: Maintain bullishness.
DOLLAR INDEX: Dollar Index is currently trading at 77.93 levels. Looking ahead due today, CB Consumer Confidence expected better .Immediate Support seen at 77.84 (Daily Fibo) levels and resistance is at 78.53 levels (Daily Fibo). Medium Term: Slight 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.