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PAKISTANI RUPEE MOVEMENT:

Pak Rupees weakened during the week in inter-bank market as it opened on Monday at Rs.104.60/80 while it closed last Friday at Rs.104.85/105.00 .This Friday it closed at Rs.104.60/80 In the open market. Pak Rupee was Rs.104.30/104.60 on Monday while it closed this Friday at Rs.104.35.

GBP/USD WEEKLY OVERVIEW

Sterling fell to a seven-week low despite strong U.K. growth rates in the third quarter, but the royal currency was still hurt by dollar’s strength. Strong U.K. growth data couldn’t support the pound due to negative pressures on the royal currency, especially as the dollar traded near a 14-year peak versus major currencies. Sterling hitting a month low even as the dollar keeps falling against major currencies. Sterling’s drop comes as the dollar moves near a 14-year peak despite edging down for two consecutive sessions, which forced the royal currency to fall. Sterling was still hurt by the Bank of England’s decision to keep monetary policy unchanged while pointing to weaker outlook for inflation in the coming period, which slashes the chances of a rate hike, in turn hurting the pound. The royal currency failed to find support as selling recommendations kept piling on, especially as U.S. economy outlook brightens further, in turn raising demand on the dollar and pushing the pound lower. Sterling kept falling after hitting a two-week low, due to the negative impact of the Bank of England’s signal to lower inflation, which slashed the chances of a rate hike. Sterling’s drop comes after BoE forecast a drop in inflation, which heaped pressure on the pound.Sterling fell to a seven-week low despite strong U.K. growth rates in the third quarter, but the royal currency was still hurt by dollar’s strength, Worries remain regarding Britain’s unsafe exit from the European Union, which reflected negatively on the pound’s performance against the dollar and other currencies. Sterling was steady at around 1.2270 against the dollar, within sight of a seven-week low of 1.2229 touched late last week, amid renewed uncertainty over the process by which Britain will leave the European Union. While dollar edged slightly higher against the other major currencies after the long Christmas weekend, holding near the strongest level since December 2002 as the market entered the last trading stretch of the year. Sterling kept falling against the dollar for the second session, hitting its lowest since the end of October, following earlier data from the U.S. and British economies, Earlier U.K. data showed the BBA Mortgage Approvals index down by a hundred to 40.7 thousand approvals in November from 40.8K.

Technically: The GBPUSD pair shows sideways and tight trading recently, keeping its stability below the key resistance 1.2339, which may keep the bearish trend valid until now, supported by the negative pressure provided by the MA50, waiting to resume the bearish bias to visit 1.1997 level as a next main station, Holding below 1.2339 level represents key condition to continue the negative overview, as breaching it may push the price to achieve some gains.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GBP/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1.19281.21151.22191.23021.24061.24891.2676
GBP/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.22731.23861.21991.2322
EUR/USD WEEKLY OVERVIEW

Euro wavered as the dollar kept hovering nears a 14-year high against main currencies, forcing the common currency into sideways trading. Euro’s wavering comes amid thin trading volumes in the markets Christmas, with most investors cashing out of the markets. On the other hand, the European Central Bank released its Economic Bulletin, showing policymaker’s interest in inflation rates as they near the bank’s 2% target in the medium term, which buoyed the common currency yesterday before returning flat. Euro rose as trading volumes grew thin in the markets while the dollar wavers, helping the common currency inch higher, Euro’s modest gains come amid thin trading volumes due to the Christmas holiday, with most liquidity moving out of the markets this week, On the other hand, the euro kept trying to recover from its recent lows, as the dollar spiked against main currencies after the Federal Reserve increased interest rates. The euro rose after the decline that happen yesterday, meanwhile the euro found support after disappointing housing data which released yesterday from the US economy, which increased selling the dollar, rising in euro also is the result of the absence of economic data that would adversely affect the European currency in addition to weak trading volumes in financial markets, which would give a chance for the euro to rise against the dollar.

Technically: The EURUSD pair trades positively after touching 1.0370 yesterday, to approach from testing the MA50 again, which continues to form negative pressure against the intraday and short term trading, In general, the main bearish trend may still valid and active in the upcoming period unless breaching 1.0519 level and holding above it, as breaching this level represents the first key to turn the short term trend to the upside, noting that the expected bearish wave targets may start at 1.0326 and extend to 1.0160.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (EUR/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
0.99521.02331.03751.05141.0656107951.1076
EUR/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.04531.06521.03711.0518
USD/JPY WEEKLY OVERVIEW

The dollar dipped against the yen, edging lower down after U.S. Treasury yields dipped on mixed economic data. The Japanese yen is tumbling after the Bank of Japan kept policy on hold, The yen has weakened by about 11% against the dollar since the election of Donald Trump. But while it made no change to policy settings, it did upgrade its assessment of the economy, noting that a “moderate recovery trend had continued” while exports “picked up”. “…the bigger picture is that economic conditions have started to improve recently,” Capital Economics’ Marcel Thiel ant wrote. “What’s more, the exchange rate has weakened sharply since the US presidential election. Corporate profits already started to rebound in spring, and a weaker yen will provide an additional tailwind by lifting the value of exports and earnings of overseas subsidiaries.” “A weaker yen will also lift prices of imports, and could boost inflation by 0.5 percentage points next year,” he added. “We expect both headline and underlying inflation to rebound sharply in coming months. As such, we expect the Bank to leave policy settings unchanged for the foreseeable future.” dollar hit a fresh 14-year high. The yen fell today against the dollar, as the dollar edged slightly higher against a basket of currencies in pre-holiday trade, near of its 14-year-high, as investors took profits in the run-up to the Christmas weekend. While yen fell against the dollar as the BoJ left its monetary policy on hold and expressed a more upbeat view of the domestic economy. The yen fell today against the dollar, as the dollar inched after upbeat U.S. economic data reinforced expectations for economic growth under Donald Trump’s Administration and more rate hikes by U.S. Federal Reserve next year. The yen fell against the dollar in light of trading volumes in financial markets, which reduced the demand for the Japanese currency which facing negative pressure during the recent period, on the other hand, the falling in the demand on yen as a safe haven and raising the demand on indices reduced the chances of recovery of the Japanese yen and continues to decline.

Technically: The USDJPY pair bounced bearishly after approaching from 118.00 barrier, to move below the MA50 and settles below it, providing positive motive that we are waiting to assist to push the price to resume its main bullish trend again, Therefore, we keep our bullish overview for the upcoming sessions unless we witnessed clear break to 116.55 level and holding below it, noting that the waited targets begin by breaching 118.50 to open the way to head towards 120.00 as a next main target.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (USD/JPY)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
113.41115.17116.06116.93117.82118.69120.45
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
117.18117.80116.04116.95

 

GOLD WEEKLY OVERVIEW

Gold prices kept trading near a ten-month low as the precious metals keeps the wavering that dominated it this week, especially with dollar’s rapid moves against major currencies lately. Gold kept wavering due to weak demand on the precious metal as risk appetite grows in the markets, reflecting negatively on gold lately, which hit ten-month lows. Gold prices wavered amid thin trading volumes in the markets due to the holidays, with the precious metal rising at first before trimming the gains, Gold suffered from wavering recently due to mounting negative pressure from dollar’s surge against main currencies, stemming the advance of the yellow metal. Gold prices rose to the highest level in a week amid a weak dollar, as the dollar fell against the major currencies, the dollar fell after the housing sector data which released yesterday and showed worse than expected, in addition the selling shares which has increased the demand for gold as a safe haven. Technically: Gold price opens today’s trading with bullish bias to approach from the initial resistance 1154.00, waiting to breach this level to confirm opening the way to head towards our main target at 1172.00, to keep our positive overview valid and active for the upcoming sessions, Therefore, we are waiting for more bullish bias today conditioned by the price stability above 1124.00, as breaking this level represents negative factor that will push the price to visit 1047.00 on the near term basis.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GOLD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1086.121117.121133.481148.121164.481179.121210.12
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1133.051162.751131.751149.85
OIL WEEKLY OVERVIEW

Crude prices rose as markets await the start of global production cuts according to the deal between OPEC and other global producers, On the other hand, the dollar wavered amid thin trading, which helped prices advance due to lack of resistance from the dollar. Crude prices rose as markets await the start of global production cuts according to the deal between OPEC and other global producers, On the other hand, the dollar wavered amid thin trading, which helped prices advance due to lack of resistance from the dollar. Crude oil prices rebounded after declines yesterday as a result of the report of the American Petroleum Institute, which showed a rise in US inventories of crude oil, contrary to expectations, the data which released yesterday from the United States report the American Petroleum Institute was showing a rise in US inventories of crude oil during the last week by 4.2 million barrels, compared with expectations for a decline to increase by 2.1 million barrels.

Technically: Crude oil price keep its stability above the previously breached bullish pennant’s resistance, while the MA50 keep supporting the price from below, Therefore, these factors encourage us to keep our bullish overview that its targets begin at 55.27 and extend to 56.50, noting that breaking 52.65 may stop the expected rise temporarily to push the price to test 50.90.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (Oil)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
51.08
52.39
53.09
53.70
54.40
55.01
56.32
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
53.15
54.31
53.00
53.79
ISMAR Financial – MUJEEB UR REHMAN KHAN – Director, Corporate Affairs

DISCLAIMER: This report has been prepared by ISMAR financial. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. This document is only for Reading information.

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