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Shivani Financial GBP/USD short term bottom seems 5478-5383 and top 6210-42. Shivani Financial EUR/USD short term bottom seems 2580-2618 and top 3510. Shivani Financial USD seems to weaken this quarter with GBP target of 6330 and EUR of 3250 if talks of QE3 takes place and euro area resolution policies implemented without new story. Shivani FinancialGold has taken correction according to our forecast for it to go 1850 by August end.

Monday, January 23, 2012

Market Brief (23-Jan-2012)

EURUSD has started the week lower as the ongoing discussion between Greece and its private sector bond holders has not yet led to an agreement. The Institute of International Finance (IIF) has sounded optimistic that negotiations are steadily coming together, and that at present there is a proposal on the table which has been agreed in principal, but is now simply being vetted by the EU/IMF. However, market participants have been waiting anxiously for Greece talks to yield progress for some time now, and the slow pace of development on this issue has likely dented market confidence. In addition, any deal will not now be complete before the start of today’s meeting of EU finance ministers.

During the Asian session, numerous bourses have been closed in observance of the lunar New Year, and activity in other markets that are open has been relatively subdued. The Nikkei has closed at virtually the same level it opened, while the Hang Seng and shanghai Composite have remained closed.

Coming up in today’s session the data calendar is light; Eurozone consumer confidence does not hit the wires until later this afternoon, and aside from that the only other release of note will be Canadian leading indicators. Instead, watch for comments out of European officials at the Ecofin meeting to dominate FX focus.

By
M.Zohaib Gadit
Forex Trading Consultant

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