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GBP & GOLD on the UP – EURO could sink later in the day- March 15

March 15, 2013
 
EURO @ 1.3015 = I will give some space for a move towards 1.3040-50, but do not see a move beyond in Europe, as it needs to move above 1.3090 for 1.3120 zones before down again. However, preferred strategy until NYK will be to sell euro around 1.3050 zones for 1.2980-90. My traget is 1.2950.
GMT 3;10 – GBP @ 1.5087 = Cable has support around 1.5050 and needs to fall below 1.5005 for more losses. I am still looking for another up move, but needs to push beyond 1.5120-25 for a test of 1.5150-60 zones before exhausting.
GMT 3:23 – JPY 96.07 = Weakness of Japanese currency could be seen if 95.60 holds for test of 96.50-65 zones. Or else JPY gains could extend up to 95.20.
GMT 3:27 – AUD @ 1.0368 = Support is at 1.0345, which should encourage for another test of 1.0380-90 zones needs to clear 1.0410-20 for more gains or else 1.0320.
GMT 3;37 – GOLD @ $ 1591.50 = In Asia/Europe gold has support around $ 1587-89 zones and may test $ 1596-98 zones. Break could threaten for test of $ 1602-04 zones. However, more fall will only be possible on break of $ 1684 for $ 1578-80 before up again. Bias is on the upside.
 
This was 3rd consecutive fall in US weekly jobless claims, which is good news and should give lot of confidence that the economic recovery is surley taking place as jobs market is improving. Despite better US economic data we saw selling of US Dollar, which could be either due to European leaders gathering, news of large option related buying or because of some disturbing news about JP Morgan. 
 I think USD still has the upside momentum because of better economic prospects in USA, it’s equity is in good demand that also helps USD and European economy cannot afford strong Euro or delay further easing, which means rate cut in the Euro-region is unavoidable. 
Today there are quite a few economic data’s that will be released from Europe and USA, which should give more clue about the economic progress in two continents.   
Meanwhile, GBP that was looking for some excuse to recover got the required lift from BoE Governor Mervin King’s statement that the currency is “Properly Valued” fearing further fall may add inflation fear. I think this should be enough for now because last month it was his speech calling for weaker Pound Sterling dented the British currency. It is economic data that will determine Cable’s future trend. 
 
 
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