Skip to main content

Week ended 29th July, 2011 – Currencies this week .


S.African RAND
Brazilian REAL
Mexican PESO

Most of the currencies were appreciated against the USD and to some extent against the EURO. But important one to look in was Swiss FRANC. Swiss FRANC went to record level against the EURO and also against USD. Japanese YEN and AUD were also impressive. In case of some of the Asian currencies growth outlook and rate hikes have an effect on it, as new flows  are coming in these high rate areas.

Coming week

EURO’s move was ok, as I said in last day that it will move around 1.40-1.44. but I do thing that now time has come for EURO to prove the pattern which it formed, last two day’s closing gave indication of that. Let see what happens in coming days.
As I said in last day that USD may drop but it has a good support at 73.5 level. It’s higher resistance is at 76 level and it will break the bearish pattern if it goes above this level. But if the pattern is true then it will drop more in coming days.
Swiss FRANC drop more this week, as many are taking shelter under it. Last few days AUD closed lower from it’s high point but it’s last day move was better. Like Swiss FRAN, Japanese YEN is also in same position, also some better news from Japan makes it an alternative.

Unless some solution comes from US about the debt problem, USD will react like this in coming days if not more. On the other hand European debt infection, especially the contagion one is really a problem for them. So other currencies will react like this with these two currencies. Hope politicians will contribute better for their country and for world as a whole.

NOTE :  Please see the disclaimer below this blog .


Popular posts from this blog

DAX forecast for coming week ended 15th March, 2013.

This week was very good for Dax, though it is getting resistance at 8100 range. Now it has a chance to test downside again. I think even if Dax tests lower levels, it has more chance to bounce back from around 7800 range and therefore it will again test upside.

On the other hand if it shows flat movements around 8000 range in initial days of the coming week then there is a chance that it may take a decisive call in later days. Considering the recent trends it has the chance to test higher levels may be around 8200 but that will be a very aggressive call after taking in to account the movement from last December. I will worry about the downside when Dax will be testing levels below 7600 ranges.
NOTE: Please see the disclaimer of this blog.

Fed’s rate hike Vs Sovereign rating up gradation

Financial market is very much worried about the rate hike in US, probably this is going to come in coming December. But I think that is not going to change much of the things. Even Fed hikes rate in December it will be not so much, because we are forgetting one thing that interest rate in US is around zero so even they hike rate by 0.25-50% basis points (at most) in this year that will not be enough cause for Dollars to change their locations around the world especially markets have already discounted this coming rate hike in US.

A new disaster is coming in EU banking sector, whom to blame, big Audit firms!

First I was thinking what should be the title of this posting? Will it be good if I write that big audit firms set the time for EU bank collapse! If someone is thinking that financial crisis is over then think twice because the coming EU banking crisis is no way less than 2008 financial crisis. The time bomb will explode at some point of time in future, the time has not yet set for it. In that tsunami, forget about the smaller if any major banks collapse then I will not be surprise.