Metal Report 11 jan 2013

Currency Headlines--->11 jan 2013

Currency Headlines
Euro Rises as Spain Sells Debt Before ECB Meeting
The euro strengthened for the first time in three days against the dollar after Spain sold more than the maximum target at its first debt auction of the year, boosting demand for the region’s assets.

The euro gained 0.3 percent to $1.3107 at 12:03 p.m. London time after dropping 0.4 percent during the previous two days. The shared currency rose 0.6 percent to 115.48 yen after appreciating to 115.99 on Jan. 2, the strongest since July 2011. The yen fell 0.3 percent to 88.12 per dollar.

Spain’s Madrid-based Treasury raised 5.82 billion euros from the sale of three bond issues, including a new two-year note with so-called collective-action clauses limiting investors’ rights to oppose write downs. The upper target for the auction was 5 billion euros.

U.K. Inflation Bonds Surge on RPI as Pound Strengthens After BOE
U.K. inflation-linked bonds advanced, pushing 10-year yields to an all-time low, after the Office for National Statistics said it will maintain its current formula for calculating the retail price index.

The pound strengthened against the dollar as the Bank of England’s Monetary Policy Committee kept its benchmark interest rate at a record-low 0.5 percent and the asset-purchase target at 375 billion pounds ($602 billion).
Indian Rupee Rises to One-Week High on Recovery, Rate-Cut Signs
India’s rupee climbed to a one-week high on speculation the central bank will reduce borrowing costs to support growth amid signs of a recovery in the global economy.

Wholesale prices rose 7.37 percent in December from a year earlier, near the 10-month low of 7.24 percent in November, according to the median of 28 estimates in a Bloomberg survey before data due Jan. 14. The Reserve Bank of India will review interest rates on Jan. 29.

TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
USDINR has shown weakness in past 3 sessions. The pair is looking weak, though it may find support at lower levels. The pair can be traded both sides
Sell near 55 SL 55.25 TGT 54.75/54.55 OR Buy near 54.55 SL 54.35 TGT 54.79/55

EUR INR (Jan 13– Expiry)
The pair can be considered Sell on rise. The pair can find support at lower levels.
Sell near 72.01 SL 72.15 TGT 71.78/71.57/71.40 OR Buy near 71.40 SL 71.25 TGT 71.66/71
GBP INR (Jan 13 – Expiry)
GBP is in downtrend, can be considered on SELL side. Though support can be expected at lower levels.
Sell near 88.55 SL 88.70 TGT 88.20/87.80 OR Buy near 87.60 SL 87.45 TGT 88.09
JPY INR (Jan 13 – Expiry)
Yen has shown strength against currencies, globally. In India also it has given strong bounce. However, its trend is decided by the move in USDINR. Positions can be taken, after watching 1st hour movement in USDINR.

NIFTY CHART & VIEW

NIFTY ON TECH-CARDS: Struggle continues in narrow range…

NIFTY had constantly been getting resisted at 138.2% Fibonacci Extension mark placed at 5950/60. On weekly cards three
consecutive weekly DOJIs were formed indicating indecisive action near the mentioned mark. But this week’s action has
formed a breakout action but with gap up which may be termed as an abnormal breakout. To reach either 150-161.8%
extension marks, index must sustain above this breakout point or gap which it made to break the range. Also, since Nifty has
made a bottom near 4770, Nifty has been moving up in a channel form, which, at this stage, shows a support near 5750
levels. Now, next resistances for the nifty are seen near 6030/40 and near 6145/65 levels, which can also be termed as
extended targets for the nifty. Similarly, 5950, 5835/40 & 5750 to play a crucial supportive role for index hereafter and
should be treated as crucial from current trend’s point of view. Any breakdown below these would mean that Nifty is going
for short term trend change or becoming bearish on the cards.