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GBP & Gold under pressure – Feb 12

February 12, 2013
Join me on Twitter for quick currency & gold Updates……….. @asadcmka
 
LATE UPDATE……..
 
GMT 7:42 – (C) what to do in gold where to sell now 43 will see some upside in gold before us open
GMT 7:49 – Looking for test of $ 1640-42 zones
GMT 9:14 – GBP @ 1.5583 = If short square your poistion around 1.5575-83
GMT 10:10 (C) in gold where to enter shall buy around 40
GMT 10:16 – if you have sold around $ 1644-45, book your profit $ 1638-40.
GMT 11:11 (C) what about gbp sir?
GMT 11:13 – GBP @ 1.5602 = Resistance around 1.5640-50. May trade in a 1.5580-1.5650 for the rest of the day
GMT 12:28 – GOLD @ $ 1649.50 = Sell around $ 16451-53 STOPS $ 1657
GMT 14:01 – (C) sir, what happened to YEN just now?
GMT 14:04 – PY @ 93.70 = G-7 says statement was misinterpreted. If fails to move beyond 94.20. Could be heading for big fall…………..
GMT 14:21  – SIR, “Superman” is going to speak in few minutes. Any precautions of JPY and EURO?  Thanks
GMT 14:25 – Not too sure after his last appearance following ECB MPS. But he may not shift his stance. Euro should dip. And if he endorses G7 view on Yen. We could see sharp gain of Japanese currency….
GMT 14:40 – (C) sir, where to cover shorts of GOLD positions ? Thanks
GMT 14:44 – if holds below $ 1650, could see test and push below $ 1638-40
GMT 15:03 – EURO @ 1.3437 = Draghi has given possitive stattement about Spain’s progress that could support Euro and may test 1.3480-90 zones. The key level on the downside is 1.3370-80 that should hold for now. Cheers until tomorrow…………….
 
 
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GMT 3:43 – EURO @ 1.3394 = On Monday market was comparatively less volatile Gold and Pound Sterling got the pounding. As I have been pointing since last 2-weeks through my daily post that we did not notice any major buying interest despite Chinese New Year that began about couple of days ago neither there is news of major Central Bank buying, gold is looking good for a fall. Realistically gold has also lost its charm of heavenly status after the easing financial condition in Europe. Talks of inflation risk and FED may consider doing away with QE rather earlier than thought is neither helping gold. If US economy continues to enter positive territory at a faster pace then this may give further blow to the gold Bulls.
 Pound Sterling is no more immune to bad economic data,  as we saw some months ago and reacts negatively to poor data. The pressure would continue, unless there is economic clarity because UK faces sever risk for downgrading that has shattered investors confidence, as European investors were quick to shift their funds back to Europe from UK as soon as they feel comfortable about Euro-zone recovery. So economic data would continue to play key role in currency behaviour. Recent currency trend suggest that it takes longer time for  a currency to correct as compared to past. Euro and Yen is a good example, as we have noted that the running stretch is longer than earlier seen. But due to its interest differential may not take that long to recover. Keep a close watch on release of economic data’s.
 Meanwhile, G20 meeting will soon take place, but statement from Japanese official hints that they are not concerned about Yen’s behaviour and may not hesitate talking weak Yen and creating inflation. If much emphasis is not given on currencies we could see the continuation of current trend.
EURO @ 1.3394 = Struggling to move beyond 1.3420-25 halts up move to test 1.3450 levels risk for a drop to 1.3340-45 zones that can be extended to 1.3310-20
GMT  4:16 – GOLD @ $ 1645 = Gold will remain under pressure as long as hold below $ 1656. Test and break of $ 1638-40 will encourage for more losses
GMT 4:06  – JPY @ 94.28 = As long as 93.70 holds see risk for test of 94.60-80 zone
GMT 3:56 – AUD @ 1.0245 = Aussie should find support around 1.0215-20 zones and break of this level will see test of 1.0190. However, AUD may find resistance around 1.0275-80
GMT 3:53 – GBP @ 1.5648 = needs to push beyond 1.5680-90 zones for 1.5720 or else fall below 1.5610 could extend losses towards 1.5570-75 levels
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