Skip to main content

Week ended 12th August, 2011 – Currencies this week.

Major currencies were flat this week though things are not same for other currencies like YEN & Swiss FRANC. Look like investors are not sure about their future investments in Europe and US.


S.African RAND
Brazilian REAL
Mexican PESO

In the later days of the week investors were not sure about the further rise in Swiss FRANC, as some are expecting further rate cut. But things were not same with YEN though in later days it showed some better performance. South African RAND has depreciated lot during last few weeks but unless the authority settled their differences it will be hard to look for a correct direction.

Coming week

EURO is still moving in the range of 1.40-1.44 range, unless it negates the pattern I will not change my view about EURO’s up movement in future.
After so much quick fall I was expecting AUD to rise a bit but it was very flat this week. In the low side it has a support at around 0.98 and on the upside it has resistance at 1.04.
Swiss FRANC showed some volatile movement, FRANC breaks it’s minor support at 0.765 and went close to the level of 0.72, but it was unable to break the support of 0.80 level. Unless FRANC breaks this 0.80 and then 0.84 level, I am not very bullish about it’s rise from here.
USD is moving around 73.5-75 level, unless it breaks 76 level it stays with in the bearish pattern and it has still a chance to drop from this level.
YEN’s movement was very disappointing this week as it lost all it rise in last week. I don’t  know but I have a feeling unless it breaks 76.5 level it may again rise to test 79 level.
Brazilian REAL rose to test 1.64 level as I was expecting last week but here it may again test 1.58-1.56 level in the downside. I am not sure but it looks like that REAL may be making a pattern for further rise in future.

Currency market is facing some storm because up to few days ago investors were taking shelter under Japanese YEN and Swiss FRANC but since respective countries took steps to protect their economy, things are getting very hard in currency market. So where these investments will go ?   
Most of the European and US currencies have their limitations, so what I think investors are going to take shelter on those currencies whose economies are better than these problematic areas. So future destinations may be Australia or couple of north European currencies ! 

( Rise and drop in currency under heading  COMING WEEK means rise & drop in chart figures, not currency’s rise & drop, though for some currencies both are same in meaning. )

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.