THE TIPSTER
ASIAN currencies continue to attract investors. With risk appetite picking up, the appeal of high-yielding currencies has increased. Earlier this week the central bank of India raised its benchmark interest rate for the second time in a month. The technical outlook for sterling-Indian rupee is weak. The next target on the downside is the 2009 low at R66.11. Traders should look to short into sterling rallies. A break of the 2009 low should see a swift move lower – FairFX has a forward price of R68.13.
In Singapore last week the central bank revalued the country’s dollar after raising growth and inflation forecasts. This revaluation saw US dollar-Singapore dollar plummet 200 basis points in the space of just 24 hours, to 20-month lows around SG$1.3710. There is some support around SG$1.3740 from lows in March 2008; a buy around these levels with a stop around SG$1.3680 could be a play for the brave. Spread Co offers SG$1.3745-SG$1.3753 on the pair.
Following the Goldman Sachs revelations last Friday, the US dollar rallied hard against the Canadian dollar as risk aversion took hold of investors and gold plummeted. Prior to this, the US dollar-Canadian dollar pair had looked like it was heading much lower – it closed below the significant Ca$1.000 level on Wednesday. The bounce up to around the Ca$1.0140 area looks like another opportunity to go short on the pair with a target of Ca$0.9800. Spread Co offer Ca$1.0121-Ca$1.0125.
After last week’s televised prime minsterial debate, sterling-US dollar took a bit of a tumble, hitting a low of $1.5200 before heading back towards the $1.5400 level. But volatility in cable is expected to continue as the second debate takes place this Thursday and we near polling day. Capital Spreads quotes a price of $1.5388-$1.5390. If you want to trade sterling against the euro, IG Index is offering £0.8767-£0.8769.