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Currency Gains To Be Short Lived Due To Positive US Economic Data’s – Nov 28

November 28, 2013

Inter–action with my Blog Subscribers……

 

 9:18 AM  sir, If short in Euro then where to book profit?  Thanks
9:27 AM   Euro @ 1.3607 =I am confused as I gave signal to buy Euro in my morning post and would want to book profit around 1.3610-20 levels due to thin market condition……
9:28 AM   GOLD @ $ 1243= Book your profit around $ 1243-45…………..Cheers
 9:33 AM     GBP @ 1.6304 = Hope ypu have booked GBP profit un up around 1.6340.  Now I would wait instead og buying Pound, as break of 1.6285-90 risks for another 20-25 pip drop in next 1-hour…….
9:34 AM  How about AUD Sir?
9:35 AM   Almost dead in last 5 hours, it traded in a 20 pip range…..
I would not do anyting until it is within my given channel………
9:36 AM  Well sir, Actually i was short in GBP from 1.6341 and booked profit at 1.6301 and missed long euro that’s why i short euro 1.3601 after German’s data. but now closed in minor loss and waiting for your next signal.
Thanks
10:01 AM  Euro @ 1.36 = could teat 1.3525-30 zones………..
 10:27 AM    if you you sold AUD @ 0.9150…..Stops 0.9185……..
 10:29 AM  Okay, Thank you Sir.
10:34 AM   so far Carney’s statement on Housing is Bulllish………….
Market will remain choppy…..
11:06 AM    GBP @ 1.6342 = It seems that so far there nothing too juicy for Pound to climb and holding 1.6350-60 well, failure to break above would mean fall possible. Do also keep an eye on 1.6380.
Though this is highly risky proposition…………..
11:09 AM   I am refering to Canery’s talk to press…………………
12:35 PM   JPY @ 102.35 = Book your profit around 102.35-40….Cheers
 1:17 PM    AUD @ 0.9112 = The expected dip has occured book your profit round 0.9105 -12….Cheers
1:34 PM   EURO @ 1.3602 = Close your purchase @ 1.36………..
Ok pals, despite slow trading activity due to Thanksgiving day, we closed all deals in profit.
Cheers until tomorrow………….

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DAILY COMMENTARY

US data suggest that the economy is gathering momentum though apparently it may look mixed batch of data, but comparing drop in jobless claims and increase in the confidence level with minor drop in Durable Goods data, which is always considered notorious that fell due to fewer Boeing sales is nothing more than a joke because if the transportation number is deducted from the durable good data the fall is only 0.1 pct, which is negligible. Chicago PMI did fell by a small number, but that should not be a worrying sign. Honestly, this is no comparison in economic terms, as the emphasis should be on growth and improving job market.
While, in the European continent, Merkel’s CDU got the much expected boost after concluding deal with SPD party that should be good news as collation will lead to political stability in Germany. But things could get worsen as defiant Berlusconi has been shown the door, he has the ability to bounce back and it is yet to be seen that at 77-years of age has the legs. He has already called “a bitter day, a day of mourning for the Italian democracy” and has said that he would not leave politics.
However, the big move of the day came in foreign exchange market came in UK, as Pound Sterling gave another big welcome to Marke Carney BOE Governor for all the hard work done by his predecessor Mervin King, as the British currency roared after the GDP announcement that as per expectation. There demand for the currency from foreign investors mainly from Asian buyers (Central Banks). Today Financial Stability Report is due, which is announced twice a year under BOE guidance that will provide better picture of the economy, as tone will be the key for GBP’s next move.
US market is closed due to Thanksgiving Holiday, but there are quite a few data announcement from Europe. German CPI number will be of keenly watched, as it is expected to jump that will give feeler about the inflation condition, which is the most talked subject in Europe.
GMT 3:24 – GOLD @ $ 1240 = In the absence of US market, today’s move could be of same pattern as of yesterday/ $ 1234-35 should hold and break of $ 1246-47 will encourage for a move towards $ 1248-50 band, before easing as $ 1256 should hold. On the downside $ 1230-32 levels should hold. Though trend remains on the downside.

GMT 3:30 – EURO @ 1.3575 = Euro may hold around 1.3540-50 levels for another upside attempt break of 1.3598 will encourage for 1.3521 before down again or else break of support levels will help in extending fall towards 1.3510-25 zones.
GMT 3:35 – GBP @ 1.6298 = Bullish mood is still intact. Hence, for a quick trade buy on dip is preferred as support around 1.6260-70 should hold for 1.6340-50 zones, only break will encourage for 1.6380. But fall below 1.6210-20 will increases risk for more losses.
GMT 3:42 – JPY @ 102.06 = JPY has resistance around 101.70-80 levels and only break would encourage for 101.50, which is less likely to happen for a move towards 102.30-40 zone.
GMT 3:46 – AUD @ 0.9123 = Aussie has resistance around 0.9150-60 that should surrender for possible test of 0.9070-80 zones, break risk for 0.9050 Or else 0.9180.

 

Twitter @asadcmka………

More Later…………………..

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