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MaRkeT tO CoNCEntRaTe oN uS EcoNoMic DaTa – uK raTing CouLd bE cHopPeD

December 6, 2012

LATE UPDATE……………………………………..

GMT 10:03-AUD @ 1.0488 = Target met book your profit around 1.0488-93
GMT 10.15 (Subscriber) – whatold to do in gold sell as is below 1698
GMT 10:25 – my prference would be to enter around $ 1694. Furthermore, I have responsibility to protect and guide all to the best of my ability. I am not here to force everyone to trade on every ticker……..
GMT 13:42 – GOLD @ $ 1686.70 = hold your breath and take chance of big profit as Gold could still test $ 1678-90 zones. Hope you have sold gold around $ 1694
GMT 13:48 (Subscriber) – what about euro?
GMT 13:51 – EURO @ 1.3047 = I am sure you are smart enough and must have sold EURO as per my morning post, you take profit around 1.3042-47 of cab take chance for further drop…….
But If you are SHORT gold book your EURO profit.
Start booking profit. market will remain choppy as DRAGHI speaks…
GMT 13:54 – (Subscriber)yes sir booked profit at 1.3037 thanks sir
GMT 13:56 – excellent, now 1.3005-10 is the next level to watch
GMT 14:11 – (Subscriber) Sir Where you suggest to Short the EURO again? Thanks
GMT 14:32 – Dollar may not gain further than days high and currecies could bounce back. Square all Poistions………
GOLD remains tricky as it has found strong support around $ 1685-86 levels. Failure to break below could see another upside test of $ 1695-86
GMT 14:44 – EURO @ 1.3008 = Buy around 1.2992-98. Apply STOPs if 1.2965 breaks for test of 1.3050-60
GMT 14:52 – JPY @ 82.42 = I have earlier signaled to buy Yen around 82.40-45. Suggest avoid until tomorrow…Cheers
GMT 15:02 – GOLD @ $ 1691.80 = Hope after booking your profit you have sold gold around $ 1695. book your profit around $ 1690 Market will remain choppy.Cheers
GMT 15:06 –
OK pals, end of another excellent day.
Do apply stops and if not comfortable sqaure your position.
Cheers until tomorrow……..

============

GMT 3:28 – EURO @ 1.3053 = Market optimism about some of the positive developments in Europe eased after Spanish bond auction, as Spain could not find buyers of of its targeted amount of Euro 4.5 billion bonds that has once again shifted sentiments towards the need of Spanish bailout request.
Today is ECB’s last policy announcement of 2012 and as no change is expected, ECB President Mario Draghi’s press appearance will be watched with interest. I am sure he is likely to maintain his Bullish tone with confidence on European financial matters. He may not have enough to add anything new, but he expected to blow his trumpet by reminding the market of having the availability of his OMT tool in his sleeves.
On the US front, no progress has been made on fiscal issue, as taxation is still the unresolved issues, while President Obama’s tone is bit firmer, suggesting that settlement may take some more time.
Therefore, market sentiment for next two days will shift towards US economic data though distorted due to Hurricane Sandy, which means poor could do little harm, but surprisingly fewer jobless weekly claim number, which in my view is a possibility after watching the ADB number of 118.000/-, as labour demand could have improved if development work has started earlier, it could give small boost to the market.
Meanwhile, Chancellor Osborne in his second yearly appearance to the Parliament to talk on economy clearly said that growth is unlikely to pick-up next year. UK Economic indicators clearly states that its growth pace is slow, which could mean more government borrowing for stimulation. He spoke of lower corporate tax and hiking tax on the rich, but was unable to give a formula that how to reduce debt. UK already is suffering from high deficit and is already under watch by FITCH, the rating agency and hence downgrading doe not look unavoidable suggesting that pressure on Pound Sterling will mount in future.

GMT 3:43 – GOLD @ $ 1691.70 = As long as $ 1698 holds, gold is likley to suffer more losses. Strong support is at $ 1678-80. On dip gold will have tendency to bounce back. Major support base is around $ 1672-76 zones, If seen buy for big up-move
GMT 3:38 – AUD 1.0465 = Likley to have stronger tone and could find stiff resitance around 1.0440-50 zones. Buy on dip is prefered with STOPS 1.0420 for test of 1.0485-90. Could push beyond 1.05 for 1.0515-20
GMT 3:34 – JPY 82.52 = Bias is on the weak side as long as above 82.30 and is likley to visit 82.75-80 zones.
GMT 3:31 – GBP @ 1.6087 = Cable has restistance around 1.6120-25 and could be tough to crack, as lokking for a gradual dip to test and break 1.6060-70 zones for 1.6030-35. Upside break of 1.6150 delays downmove
GMT 3:28 – EURO @ 1.3053 = Initially I am expecting Euro to hold around 1.3070 and could see a dip towards 1.3020-30 zones, before making a small bounce back prior to US opening. However, the levels to watch today is 1.3095 on the upside and my preferred strategy is to pick the top to sell Euro. Support on the downside is at 1.3005 and only break of this level could challenge 1.2970-75 zones

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