The Japanese Yen's rapid descent versus the US Dollar moderated last week as prices gyrated around the 2002 high. Mixed chart signals give USD/JPY a mixed outlook for the week ahead.
If yields rise and spreads widen between the peripheral countries and the core countries, the ECB could re-enter the market and buy debt of the peripheral countries to bring down yields.
The US Dollar has been moving higher against Sterling for most the week ahead of the Fed policy call today and the Bank of England tomorrow. Will GBP/USD continue lower?
Explore Now
Displaying signs of imminent consolidation, Indian equities took a breather during the week gone by and ended with a modest cut. The market breadth remained a bit wider than it was during the week before, as Nifty oscillated in a 533-point range during the week. The five sessions also saw the market close at yet another lifetime high, and then the index pared some of the gains in the following days. From a technical perspective, some fatigue at higher levels was visible as Nifty closed with a net loss of 181.55 points, or 1.20 per cent.
Volatility did not show any spike. INDIA VIX rose just 0.94% to 22.25 level on a weekly note. As we head into the expiry of the monthly derivative series, the market is likely to be dominated by rollover-centric activities in the coming week. The index is likely to move in a defined range in the coming five sessions, with the upside capped.