In currency market biggest news was hike of interest rate by ECB to curb inflation rate . Rising 0.25% interest rate to 1.25% was long due by ECB , in fact many banks already have started to adjust themselves expecting this move from the beginning of this year . Some experts are expecting more rate hikes by ECB in coming days . But I think ECB will not only think about the big boys , they will also consider the impact of that to the weaker countries like Ireland , Greece , Portugal e.t.c. One of the main cause of this rate hike is inflation as such European commission upgraded their inflation forecast to 2.2% which is above their target . They are really concern about the oil & commodity factors . They increase the rate after nearly 2 years .
Brazilian REAL is again appreciated lot this week , it is in it’s lowest level ever . I do not know whether it is true or not but someone told me that Brazilian finance minister resign because he could not able to control this appreciation in their currency !
Things were also same on the northern part of Brazil as Mexican PESO also rises highest level in fact it is more than 2 years high against the US$ .
RAND it getting support at 6.60 and it can be a good support for it . Brazilian REAL in one of it lowest level ever . After 2008 this is the lowest level for Mexican PESO , it is more than 2 years high against US$ .
There is a resistance at 1.46 for Euro & a resistance at around 86 for Yen , look like in this moment it is hard for it to break it .
AUD weaken in Tuesday as Australian Central bank kept interest rate unchanged in their meeting . In Thursday AUD rises to fresh 29-year high in the news of better unemployment rate in march , in spite of natural disaster in early of this year this new is really good for them .
The difference between the USD and AUD reflects the performance of it . AUD traded at it’s highest level since it was allowed to trade freely & climbed at $1.0540 . Since AUD broke 1.02 it started a new phase of run , whatever movement it will make now it will act for future resistance and support for it .
There is a resistance at 1.46 for Euro & a resistance at around 86 for YEN , look like in this moment this is hard for YEN to break it . Euro rises to 14th month high versus US$ on the expectation of rising interest rate in Wednesday’s ECB meeting .
This week Gold beats EURO , as such Gold’s rise was good .
For dollar it was in pressure during last few days because everyone is waiting to see if US lawmakers are going to reach in any conclusion about budget .
During later period of the week many Asian Central banks intervene , as their currencies were appreciating against the
$ . They have no other way in this moment without intervening . Economies are following very simple basic rule . US
NOTE : Please see the disclaimer below this blog .