Euro is locked in a range, 200 pip bound trading is expecterd between 1.2980-13180 this week surviving dip below 1.30 due to poor US data, but all odds suggest that Euro’s upside will remain limited as sellers of currency will not hesitate to short Euro in the absence of any positive news from the Euro-zone region.
Preferred strategy remains unchanged i.e, to sell Euro on the rise, as Europe has nothing positive to offer. In reality European financial market is hostage to every small news/event fearing some kind of bad news from the region would impact its market weather it is bond auction, bank capitalization, corporate result or any news related to politics.
Gold will remain under pressure, as Indian duty remained an unsettled issue until May 7 when it will be taken up in the parliament.
A word about Syria selling 15 pct gold of its gold is good news headline because 15 pct is almost equivalent to India’s daily purchase of gold in normal times.
Talking of QE is a wishful thinking, I always say that such news always provide great trading opportunity. Basically such rumours are spread with a purpose to take advantage of the situation.