Thursday, Jan 23

Asad Rizvi

So far financial market witnessed a quiet week in the absence of any major data release. In currencies, it was GBP that enjoyed the most and yesterday's UK unemployment rate falling to 7.1 pct and fall in jobless claims gave further boost to Pound Sterling. Further BOE minutes suggested that despite quick fall in unemployment rate there is need to hike rates, which did not bother GBP that rose against USD and hitting 1-year high versus Euro.  

While, today market could differently because of some important data release from Europe. Spanish unemployment and PMI data could provide some guideline, as couple of the ECB officials have shown their reservations about economic recovery in the Euro-zone region and seemed to be prepared for for stimulus.

While, data due today from USA initial jobless claims and existing home sales may not be major market mover, but any big change in number could give reason to move the market, which could be both ways, as market will be more keen in next weeks monetary policy announcement.

GMT 3:09 - GOLD @ $ 1235 = Gold may struggle to move beyond $ 1240 and may exhaust around $ 1236-38 levels. Break $ 1227-29 zones will encourage for $ 1220-22, as see risk of fall extending towards $ 1211-13 zones. Move beyond $ 1245 will delay down move. 

GMT 3:18 - EURO @ 1.3552 = Real challenge is to break 1.3560-70 zones for 1.3590-95, which looks tough. However, downside break of 1.3502 is required for 1.3470. While, upside break will open gates for 1.3625.  

GMT 3:25 - GBP @ 1.6572 = For now Cable may hold around 1.6595-03 levels, but needs to fall below 1.6540 for 1.6510. Upside break will challenge 1.6650. However, buyers are expected to hop in if dips. Major protection is around 1.6470-80 levels. 

GMT 3:29 - JPY @ 104.46 = JPY is likely to trade in a band may hold 104.25 or else 103.95 for 104.80-90. Break will encourage for a test of 105.20 levels.    

GMT 3:32 - AUD @ 0.8802 = Aussie will struggle to move beyond 0.8830-50 zones, break of 0.8765-70, will see drop extending towards 0.8745-50 zones.

DISCLAMER : The commentary/information presented is not intended for trading purpose. The idea is to exchange views with the members/readers. Therefore, I accept no responsibility or liability for any losses incurred due to position taking.