US Dollar has lost its gloss against most of the major currencies losing almost 300 pips against EURO on belief that FED may opt for QE3 and Spain may able to take a breather. So how much is left for the currencies to gain against USD ? I think not much, but we have to give some more space until the bubble burst after both the announcement.

I think market will remain choppy due to conditions that will be dominated by statements by various officials, rumors and economic data’s. But I would like to stick to my earlier view that FED will go for another round of Operation Twist and may not opt for QE3.

Yesterday, ECB left its interest rate unchanged preferring to have an option available in its hands and so will FED do. FED is well aware that its economy is passing through worst phase, which will be over shortly and the US economy will start reaping the benefit of lower oil prices that will also help to tame down the worrisome inflation factor.

Yellen’s howling should not make much of a difference, as she is one of the FED’s Dovish voters.  There are Hawks too having different ideas. Why are we forgetting that prior to Yellen’s appearance another Fed official also a voter Lockhart has said “Extending Operation Twist is on Table”? I think this statement by Lockhart in response to audience questions say’s all about FED’s next move and therefore, YELLING in frustration!

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Comment by ceasar on June 7, 2012 at 3:24am

Mr.Rizvi...what could be the levels to watch out for in Gold today..?

Comment by Manish Patadia on June 7, 2012 at 9:26am

mr rizvi what in gold for today

Comment by asad rizvi on June 7, 2012 at 12:24pm

GMT 02:36................EURO @ 1.2571 = Allow Euro to make some more gains that could stretch up to 1.2630 if 1.2590 breaks. Prefer picking the top for 1.2510

GBP @ 1.5484 = Cable could move up to 1.5530-35 zones on break of 1.5498, but should find top around those level and is likely to fall below 1.546-70 for re-test of 1.5430 

GOLD @ $ 1620.50 = There a small risk that $ 1617-18 would hold for a break of $ 1622-23 could push towards $ 1628-30 zones. However, if breaks should find top around that level. Prefer a fall on break of $ 1615 for $ 1608. Break below $ 1604 confirms bigger fall.

Comment by ceasar on June 7, 2012 at 2:02pm

Amazing call...

Comment by matahari muda on June 7, 2012 at 2:27pm

Thank you so much sir

 

Comment by asad rizvi on June 8, 2012 at 3:33am

FRIDAY JUNE 08.......

GMT 01:50...

GOLD @ $ 1684 = Gold could suffer more losses. Sell around $ 1690-92. Only upside break of $ 1600 could be threatening for $ 1575, break of $ 1569 risk for $ 1553  ;-)

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