FOMC Meeting Minutes, Give Rise to Dollar against Indain Rupees:
It is been all the traders were awaiting yesterday for decision of QE3 tapering, the FOMC meeting gave indication that it will taper the bond buying & it will eventually close bond buying in the mid of 2014. So In turn this gives rise to USD against all forex Pairs. So this in turn affect the all the Emerging Market currencies like South Africa, Brazil, Indonesia, Not only are some of these currencies pushing further into record low territory, but they are gaining momentum along the way. Also the JOB claim data from US has shown that it is increaed to three years high Quartely that is again positive move to USD pair.
And as far as India is concern we don’t have any good news or great happening that will boost our currency / economy. So still we cann’t say 65 is the highest price that we can offer. Dealers said weak domestic fundamentals such as large current account deficit and continued capital outflows too put pressure on the rupee.
Forex Market trend is yet bullish & if it remains this we could see $ price near to 70 by the end of this month.
Also the same is the case with BSE Sensex. We could expect to to touch a previous support level i.e. 172000.
My personal suggestion for equity traders is to wait for this month end close. Once you see the close below 1800 – we can stay bearish in this market. Otherwise we can expect a bullish trend again. But looking into the chart it doesn’t looks like a very good situation to tread for bullish mode. I hope you liked this post.
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