Currency Headlines
Dollar Weakens as Obama Says Deficit Deal Is Close
The dollar fell against most of its biggest peers as President Barack Obama said Congress is “close” to a deal to protect all but top earners from a tax increase as part of deal to avert the so-called fiscal cliff.
The South Korean won has appreciated the most versus the dollar this quarter, adding 4.4 percent. The Norwegian krone has been the second-biggest gainer, increasing 2.9 percent. The South African rand leads all major currencies this month against the greenback, appreciating 5.1 percent. The White House and congressional negotiators agreed to contours of a budget deal including tax cut extensions, with the remaining sticking point being how to avert automatic federal spending cuts, said an official familiar with the talks.
Canadian Dollar Gains on Optimism U.S. May Reach Deal
Dollar Weakens as Obama Says Deficit Deal Is Close
The dollar fell against most of its biggest peers as President Barack Obama said Congress is “close” to a deal to protect all but top earners from a tax increase as part of deal to avert the so-called fiscal cliff.
The South Korean won has appreciated the most versus the dollar this quarter, adding 4.4 percent. The Norwegian krone has been the second-biggest gainer, increasing 2.9 percent. The South African rand leads all major currencies this month against the greenback, appreciating 5.1 percent. The White House and congressional negotiators agreed to contours of a budget deal including tax cut extensions, with the remaining sticking point being how to avert automatic federal spending cuts, said an official familiar with the talks.
Canadian Dollar Gains on Optimism U.S. May Reach Deal
The Canadian dollar gained for the first time in four days versus its U.S. counterpart as U.S. President Barack Obama said congressional leaders were “close” to a deficit-reduction deal to avoid tipping the nation’s largest trading partner into recession.
Canada’s currency rose against the majority of its 16 most- traded peers as Obama said a deal to avert a recession from legislated austerity measures was “within sight.” The currency had the biggest intraday jump in a month after Bloomberg News reported a tentative accord that would allow taxes to go up on families earning more than $450,000 a year and extend unemployment benefits for one year.
“It looks increasingly like there’s a deal that’s on the table,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “Doubtful it gets voted on by both houses before the day is out, but I think it’ll be constructive that the deal has been agreed to, and I think you’ve seen that across the board, with most risk assets responding positively.”
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, appreciated 0.5 percent to 99.21 cents per U.S. dollar at 5:11 p.m. in Toronto, its largest intraday gain since Nov. 23. One Canadian dollar buys $1.0080.
TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
USDINR is facing selling pressure as it tries to move up. It can be SOLD at higher levels.
Sell near 55.25 SL 55.45 for possible TGT of 55.05/54.80/54.60
EUR INR (Jan 13– Expiry)
Weakness in EURUSD can be felt in EURINR also. It’s prudent to look for rise to sell.
Sell near 73.07 SL 73.21 possible TGT 72.96/72.78
GBP INR (Jan 13 – Expiry)
Pound can also be looked to Sell at higher levels.
Sell near 89.48 SL 89.60 possible TGT 89.25/89.06
Pound can also be looked to Sell at higher levels.
Sell near 89.48 SL 89.60 possible TGT 89.25/89.06
JPY INR (Jan 13 – Expiry)
Yen takes cues from USDINR.
Prudent strategy will be watch for 1st hour of trade, then take position, in direction of USDINR.
Yen takes cues from USDINR.
Prudent strategy will be watch for 1st hour of trade, then take position, in direction of USDINR.
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