FROM: PETER CRUZ DATE: 12th July, 2013 – Fri. Market Brief The USD declined as investors grappled with mixed messages about when the Fed could begin reining in its monetary-easing program. The USD was also damped by the optimistic outlook from the BOJ, which said the country’s economy is starting to recover moderately, and disappointing US economic data. Weekly jobless figures, which track first-time unemployment insurance claims, rose by 16,000 to 360,000, climbing above expectations. HSBC expects the imminent tapering of the Federal Reserve’s asset-purchase program to “turbo-charge the dollar.” Historically, a move to tighten policy by the Fed is dollar negative if the policy change comes in response to a perceived inflation threat, it says in a note. However, when a policy change comes in response to the strength of the economy, the dollar tends to perform well, it adds. “This time round, any move by the Fed will be in withdrawing monetary support should see the dollar benefit,” it says, “we have already witnessed the USD bull run in action and further evidence that the Fed will begin tapering will spur the dollar really further,” it adds. On the data slate there’s BOJ’s Monthly Economic report for July; Japan Industrial Production; UK Construction Output; US PPI Ex Food & Energy; US PPI and US U.of Michigan Confidence. SELL EUR @ 1.3090 OR BETTER – STOP @ 1.3165 – TARGET @ 1.2980 SELL GBP @ 1.5165 OR BETTER – STOP @1.5230 – TARGET @ 1.4965 – no change BUY USD/JPY @ 99.00 OR BETTER – STOP @ 98.50 – TARGET @ 100.50 SELL CL0813 @ 104.80 OR BETTER – STOP @ 105.70 - TARGET @ 103.70 SELL XAU @ 1285 OR BETTER – STOP @ 1297 – TARGET @ 1240 – no change SELL XAG @ 19.90 OR BETTER – STOP @ 20.30 – TARGET @ 18.65 – no change GOOD LUCK AND HAPPY TRADING PLS. NOTE: 1. ALWAYS REMEMBER TO PUT STOPS WHENEVER YOU TRADE, MARKETS ARE VERY VOLATILE. 2. THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS AND IT IS NOT FOR EVERYONE.
Posted on: Fri, 12 Jul 2013 01:57:17 +0000
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