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Market Celebrates after Draghi & Chinese Data

January 11, 2013

LATE UPDATE……………….
GMT   15:00 – Ok pals, except for few hick-ups, which is part of the game, it was an excellent end to the week………
Have a nice weekend………….
GMT 7:36  (C) sir euro at 1.3277 should for short?
GMT 7:40  – View unchanged
GMT 10:01  (C) should buy gold at present
GMT 10:23 – GOLD @ $ 1669 = Book your profit around $ 1667-69. Pick the lows and apply STOP if $ 1662 breaks….Cheers
GMT 11:04 – GOLD @ $ 1669 = I am not comfortable at current levels as gold could test $ 1664-65 levels…..
GMT 12:02 – JPY @ 88.78 = Book your profit around 88.72-78 and wait for next signal.Cheers
GMT 12:19  (C) sir missed the opportunity to sell usd/jpy.. shall go long around 88.60 if seen?
GMT 13:23 (C) sir view abt euro now??
GMT 13:27 – EURO @ 1.3327 = If you are Short Euro, STOPS 1.3340, if not Short Euro, then sell with STOPs to 1.3350.
GMT 13:30 – Curreny Euro buying was due to buying by large institution. therefore this rally should soon exhaust……
GMT 13:31 – GOLD @ $ 1675 = sell around $ 1675-77 STOPS $ 1682…..
GMT 13:42 – GBP @ 1.6156 = Sell around 1.6656-62 STOPs 1.6185….
GMT 14:21 (C) sir euro at 1.3361 where u see euro today?
GMT 14:24 – we are somewhere near top. Could extend towards upto 1.3370-80 before down to 1.3310-20 zones. But I always insist to apply STOPS so that next opportunity can be availed…….
GMT 14:27 – GOLD @ $ 1670.50 = Hope you guys went short around given level. Now $ 1666-67 is the key if breaks could see bigger fall……………
GMT 14:42  – GOLD @ $ 1663 = Book your profit..Cheers
GMT 14:47 – GBP @ 1.615 = book your profit around 1.6110-15…….Cheers
GMT 14:50 – anyone made good money in gold toady !!!!!
GMT 14:55 – ya me i sell n book
GMT  14:58 – good to know, no problem if others are not willing to share……cheers

 

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GMT 3:51 – EURO @ 1.3258= Couple of big events are the movers and shakers of the market. It was not decision to hold rates by BOE & ECB that was the cause of US Dollar weakness. It was ECB President Draghi’s comments that its members decision on holding the rates is unanimous. Softer rate always makes currency less attractive, as we saw similar move last week that helped US Dollar surged after FED’s FOMC minutes. Basically its the interest rate differential advantage edge to the high yielding currency that makes it more attractive.
I think there are combination of factors that has helped market to rise after the looming US fiscal cliff factor and quieter condition in Europe on its sovereign debt issue, though its economy is lacking the required growth pace, but Europe has so far avoided recession, bond yields are back to the desired level and capital outflow has surely stopped, ECB President confirmed that the money has started to flow in Euro-zone region. Further, positive economic data signaling China’s economic growth is also another big supporting factor that is helping the overall global sentiment.
But we should not forget that European growth remains a suspect. Draghi has already said that risk to European growth is on the downside. Unemployment is on a constant rise, manufacturing sector is not performing well and Europe’s growth engine Germany is wobbling. So do keep a close watch on European Economic data, as this optimism could be short lived if the economy fails to recover, which also means talk of European rate cut will emerge. Euro’s surge is surly overdone and it still needs to surpass 1.33, we could see a drop from top before possibly making another upside feeble attempt.
EURO @ 1.3258= Euro could top out around 1.3280-90 for 1.3235-40 zones and break of 1.3210 is required for more losses. Apply STOP if 1.3340 breaks.
GMT 4:07 – GOLD @ $ 1672 = Could holds $ 1665-67 levels for another upside feeble attempt towards $ 1675-78 zones. I am not comfortable buying above $ 1675, as I still see risk for big drop. Needs to fall below $ 1658-62 zones for more losses.
GMT 4:00 – JPY @ 89.02 = could test 88.65-70 zones but unlikely to hit 88.40 for test of 89.30-35 zones
GMT 3:57 – AUD @ 1.0580 = Sell around 1.0610-15 for 1.0535 or 1.0535. Stopout at 1.0645
GMT 3:56 – GBP @ 1.6149 = Top around 1.6175-80 for 1.6095. Stops at 1.6210

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