EUR: Last week spot light turned to Euro as ECB signaled no hike in June and markets circulated rumors of Greek exit. Euro was pressured on speculations that a meeting was held on Friday about Greece exiting Euro zone and readopts its own currency. Later, that was strongly denied by both Greece and Germany. Nevertheless, the focus is now on whether Greece would acquire further bailout from Euro zone as it has to complete procedures for borrowing in 2012 and 2013 from the temporary European mechanism (EFSF). Support is seen at 1.4332 (55Day EMA in H4 chart) and 1.4093(100Days EMA in H4) while the resistance comes near 1.4447 (200 Days Daily EMA in H4). EUR/INR (64.28) Exporters can hold to cover May exposure while importers can cover below 64.00 and further on dips. EUR/INR is likely to trade in the range of 63.90-64.45 levels today. Short term: Bullish. Medium term: Maintain Bullishness.
GBP: GBP is currently trading at 1.6392 levels. The Sterling climbed against majors on Friday after some investors bet that higher-than-expected UK producer prices could force the Bank of England to raise interest rates sooner than expected. The PPI data did come out higher than expected, but the main issue is Bank of England is still concerned about growth and this means both CPI and PPI will remain important. Immediate support is seen near 1.6326(55Days EMA Daily) while the Resistance can be seen near 1.6456 (21Days EMA in Daily). GBP/INR is at (73.19). Exporters should can hold to cover May exposure while the importers can look to hedge partially at 72.80 levels and further on dips. GBPINR is likely to trade in the range of 72.80-73.35 levels. Short Term: Bullish. Medium term: Maintain bullishness.
AUD: Australian dollar is currently trading at 1.0751 levels. The currency rose on the back of a Chinese report that economists said will show an increase in imports in the month April, a sign tighter monetary policy is not crippling the Asian nation's growth. Resistance is seen near 1.0812 levels while support is seen at 1.0714 levels (21 days daily EMA). Exporters are suggested to book exposure around 1.0850 levels while Importers can cover their exposure near 1.0600 regions and on dips. Short Term: Bullish. Medium term: Maintain Bullishness.
JPY: JPY is currently trading at 80.57 levels. Japan's 10-year bond yields fell to a four-month low amid speculations that the central bank will ease monetary policy to bolster the nation's economy. Resistance is seen at 81.09 (55 days 4hrly EMA) while Support is seen near 80.51 levels (55 days 1 hourly EMA). Yen Exporters are suggested to book exposure at current levels and Yen Importers can cover very partially at 83.50 plus levels. Short term: Slight Bullish for the pair
Gold: Gold is currently trading at 1501.66 levels. Gold rose for a second day on speculation that investors will return to commodity markets as concerns over the global economic recovery eased after the better than expected US Non Farm Employment data and as the dollar weakened versus major currencies. Resistance is seen at 1512 levels (55 days 4hr EMA) and Support is seen at 1470.08 levels (55 days daily EMA). Medium term: Bullish.
Oil: Oil is currently trading at $98.90 levels. Despite the geopolitical concerns Saudi Arabia has made up for the shortfall created by the Libyan civil war, while the OPEC is hinting about increasing the quotas once they meet in June. Resistance is seen at 101.28 levels (100 days daily EMA) while support is seen at 94.64 levels (200 days daily EMA). Short term to Medium term: Maintain Bullishness.
Dollar Index: DI is currently trading at 74.68 levels. Dollar Index has weakened today as risk appetite gained momentum after Non Farm Employment data came out better on Friday, easing concerns regarding the global recovery. Support is seen near 74.14 (21 days daily EMA) while resistance is seen near 75.31 levels (55 days daily EMA). Outlook remains bearish for Short Term and Medium Term: Bullish (Post July).