Skip to main content

Currency Market review after 26th August, 2011.


Swiss FRANC was in pressure due to the fear of future action of policy maker’s to curb it’s strength, this week it dropped much against EURO and also against dollar. Story was also quite similar with Japanese YEN, as new measures may come in coming week.

CURRENCY
19th-August-2011
8/19/2011-8/26/2011
8/12/2011-8/19/2011




USD
73.814
-0.26%
-0.80%
EURO
1.45
0.76%
1.05%
AUD
1.057
1.53%
0.57%
YEN
76.855
0.80%
-0.68%
RUPEE
46.05
0.96%
0.37%
SWISS FRANC
0.811
3.18%
1.68%
S.African RAND
7.134
-0.76%
0.20%
Brazilian REAL
1.604
0.62%
-0.80%
Mexican PESO
12.439
1.17%
-0.09%

Global uncertainties are creating pressure on stock indexes as a result some currencies like Indian RUPEE, Thailand’s BHAT are showing decline in their value. Indian RUPEE declined for 4th week in a row. Though currencies like Philippine PESO, South Korean WON rose this week.


Coming week

 

I am not sure about EURO’s move in last few days. As I said in past that it is in a pattern to go north from here. In coming week we may get a clear picture about it. (What is the current status of EURO, as on 17th Aug...)

AUD is getting resistance exactly at 1.06 level and in coming days it may try to break this level.

USD’s move was side based and as I said in past, it is in bearish pattern unless it breaks 76 level.

In the early days of the week YEN’s move was flat but in later days of the week it rose. It’s resistance is at 79 level. Swiss FRANC tried to break higher resistance level but as I said in last week that unless it breaks 0.80-0.84 level, I am not sure about it’s up move.

REAL showed side based move this week, for any up move from here it needs to break 1.64 level. In the downside it has support at 1.58 level. Like last week, South African RAND and Mexican PESO were flat this week. 7.3 is acting as good resistance for RAND.

It is still uncertain that whether there will be any QE-3 !  But recent events are showing that there will not be much change in the actions of Treasury buyers, as things have not changed much after the S&P downgrade. So look like liquidity will be much in future but I am not sure when. On the other hand unless the situation in stock markets improve, it’s effect on currencies will continue.



[Rise and drop in currency (under heading coming week)  means rise & drop in chart figure, not currency’s rise & drop.]



NOTE :  Please see the disclaimer below this blog .

Comments

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.