-- Posted Thursday, 19 June 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Market Update for 19th June, 2008
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY 08   -- $363.00 - $383.00				NYMEX CRUDE OIL   - $131.60. - $142.40
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EURO/USD  -- TECHNCAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
1.5380	1.5435	1.5473	1.5438	1.5614	1.5678	1.5714	1.5770
GBP/USD  -- TECHNCAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
1.9392	1.9438	1.9508	1.9574	1.9630	1.9690	1.9714	1.9794
GENERAL MARKET CONDITIONS
Base metals made quite a reversal as they edged higher. A labour strike at one of Peru’s copper mines along with a technical break out resulted in gains for copper. Copper has been the key driver for base metals and looks set for more gains. Nickel has disappointed and it seems traders are exiting nickel and buying other base metals. LME Nickel (3 months) has to float over $25000 for a week to attract short term investors.
The US dollar is starting to pare its last week’s gains as more and more investors remain convinced that the Fed may cut interest rates once a year. For me in the short term to medium term the US dollar will be more influenced by the performance of eurozone and UK economies. Eurozone’s inflation, current account deficit of member countries along with growth will be the key factors for the direction of the Euro in the medium term. In our view in the short term the euro may gain but we are bearish on euro-US dollar from November 2008 and into 2009. Buying far dated euro-US dollar put options should be an excellent investment opportunity.
The rest of 2008 and the first quarter of 2009 should be a topsy- turvy time for the currency markets. Unless the interest rate factor stabilises the high degree of volatility will continue. Crosses like euro/yen and euro/gbp will have a greater say than direct US dollar prices. Volatility in currency markets will benefit precious metals and commodities.
For the man on the street its only investment which is driving prices of food. Nature is driving food prices more than investment demand. Floods in south China, Australia wheat drought, floods in US Midwest and Iowa have all destroyed standing crops. These will reduce global output while demand keeps on rising.
COPPER -- JULY FUTURE -- INTRA DAY PIVOT: $363.0
$371 price target achieved. As long as copper holds $369 it will target $386 and $394.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $131.60
As long as $130.65 holds crude oil will target $140.40 and $145.20
HAPPY PROFITABLE TRADING
Disclaimer : Any opinions as to the commentary, market information, and future direction of
prices of specific currencies, precious metals, base metals, or equity indices reflect the views
of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
party  in reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.
Nothing in this article is, or should be construed as, investment advice.

-- Posted Thursday, 19 June 2008 | Digg This Article | Source: GoldSeek.com

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