State of the

Global Financial

Market

Deepak Singh

Twitter: smarket

March 08 2015

What happened this week?

For 12 months in a row,

the United States has

added at least 200,000

jobs — a sustained pace

of hiring unmatched since

1994 and 1995

US economy added 295000 jobs in Feb.

Sharp rally in USD index

Sharp rise in 10 year

Yields

Fear Factor

US economy added 295000 jobs in Feb.

Rate Hike Fears

Fed will raise interest rates

in the near future

Strong Dollar = Lower

Corporate Earnings

Sharp Sell off in US stocks

Is it going to be big correction?

This week: NASDAQ touched 5K

Last time NASDAQ touched 5000 was

on March 10 2000. It took 15 yrs to

reclaim this level

USD Index: Driver

Gold: Hit by Strong Dollar

Gold broke down below $1550 in April

2013 and since then the trend has been

down

Gold Slide I made a year back

Silver: Downtrend Continues

In downtrend – every support gets

broken. Silver broke down below 18.78

and has sustained below it

Brent Crude done with rally

Brent has created a technical bottom at

$45 but upside appears limited

Sugar Prices at 5 year low

No sign of turnaround

Can China breakout > 3400?

Nifty – Post Budget week

Nifty looks overextended on

chart…due for pullback?

Nifty at 9000?

The

Currency

Market

INR, USD, EURO,

YEN

USDINR

If you consider the extent of USD index rally since Sep 2014 –

INR has done very well…

INR has depreciated 3% against US

dollar since Sep 01 2014

Australian Dollar (AUDUSD)

AUD has depreciated 17% against

USD since Sep 01 2014

INR has appreciated 14.3% against

Australian dollar since Sep 01 2014

Singapore USD (USDSGD)

Singapore Dollar has depreciated 11%

against USD since Sep 01 2014

INR has appreciated 6% against

Singapore dollar since Sep 01 2014

Japanese Yen USD (USDJPY)

Japanese Yen has

depreciated 16% against

USD since Sep 01 2014

INR has appreciated 13% against

Japanese Yen since Sep 01 2014

Euro (EURUSD)

Euro has depreciated

17.5% against USD since

Sep 01 2014

INR has appreciated 14.7% against

Euro since Sep 01 2014

Summary Chart

Currency INR Strength/Weakness* (Since Sep 01 2014)

USD Lost 3% in Value

Japanese Yen Gained 13% in Value

Euro Gained 14.7% in Value

British Pound Gained 6.5% in Value

Australian Dollar Gained 14.3% in Value

Singapore USD Gained 6% in Value

* As of March 08 2015