The Euro and GBP is expected to depreciate against the US dollar on phasing out of US QE2nd. The ECB hawkish comments failed to bring in any rally in Euro as market ignored yield differential and looking at rising yield of PIIGS nations. A concern of public debt is to weigh on the common currency.
Chats of EURUSD looking bearish, expected to test 1.43 and probably 1.41 as well. GBPUSD may drop till 1.60 or 1.58 this time.
Macro economic data across the globe is at poor reading. Globe growth to slow down during the 2nd quarter. US dollar should appreciate as a safe haven on weak economic data. Apart from end of QE 2nd may lead to winding up of carry trade in US dollar.
Japanese yen may see some investment interest on risk aversion.
Commodities such as industrials, energies and dollar prices commodities to decline this June
Indian stocks see lower on to see lower move on rate hike prospects due to higher inflation level, weak manufacturing data and global selling in riskier assets.
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