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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.


S.African RAND
Brazilian REAL
Mexican PESO

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 .


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