Good Morning….
The overnight sell off in stocks and high yielder’s had little impact on Indian currency. The USDINR is almost flat; NIFY is up by 21 points.
The sovereign risk remains in the Euro area and it is expected to punish EUR against other currencies such as USD, JPY and GBP. But for today, consolidation is possible before the US market holiday tomorrow. The EURUSD is trading above the critical support of 1.33. I don’t see a major breakout this week. The 1.33 level breakout is possible may be next week or so and pull down the major pair to 1.29.
In case of USDINR, upside is limited till 45.70-45.75. I expect correction towards 45.50. As of now rates are treading around 45.68-70 range.
In major crosses, EURGBP may see sell off below 0.8441 till 0.837 (61.8% retracement of 0.8023-0.8941.
The EURJPY is expected to consolidate today, between 109.50-112.50
In commodities Copper may see mild buying interest till $8400 pet tone. NYMEX crude oil Jan 2011 to see mild pullback towards $83 a barrel.
In case of bullion $1385-$1390 will be critical level for Gold and not likely to gain above that for next 3-4 days.
The overnight sell off in stocks and high yielder’s had little impact on Indian currency. The USDINR is almost flat; NIFY is up by 21 points.
The sovereign risk remains in the Euro area and it is expected to punish EUR against other currencies such as USD, JPY and GBP. But for today, consolidation is possible before the US market holiday tomorrow. The EURUSD is trading above the critical support of 1.33. I don’t see a major breakout this week. The 1.33 level breakout is possible may be next week or so and pull down the major pair to 1.29.
In case of USDINR, upside is limited till 45.70-45.75. I expect correction towards 45.50. As of now rates are treading around 45.68-70 range.
In major crosses, EURGBP may see sell off below 0.8441 till 0.837 (61.8% retracement of 0.8023-0.8941.
The EURJPY is expected to consolidate today, between 109.50-112.50
In commodities Copper may see mild buying interest till $8400 pet tone. NYMEX crude oil Jan 2011 to see mild pullback towards $83 a barrel.
In case of bullion $1385-$1390 will be critical level for Gold and not likely to gain above that for next 3-4 days.
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