Forex Market Update

The yen strengthened against other major currencies in Asian trade Monday, after a tumble in Shanghai stocks deepened the cautious mood, pushing investors into the safety of the Japanese unit.

The greenback USDJPY, -0.28%  was at ¥116.96, after dipping to ¥116.92 in the morning.

The dollar was at ¥117.61 late Friday in New York, buoyed by strong U.S. consumer sentiment data and a recovery in U.S. Treasury yields.

The Shanghai Composite Index SHCOMP, -7.70%  fell more than 5% in early trading as Chinese regulators took steps to curb margin trading at several of the country’s largest brokerages. The Shanghai index was down 6.3% at 3163.72 in afternoon trading.

The euro EURJPY, +0.17%  was lower at ¥135.17 against ¥136.07 Friday, while the Australian dollar AUDJPY, -0.44%   fell to ¥96.06 from ¥96.87.

 the euro EURUSD, +0.44%  was at $1.1553 for $1.1569, ahead of a closely monitored policy meeting by the European Central Bank on Thursday at which it may introduce a large-scale bond-buying program.

The WSJ Dollar Index BUXX, -0.18%  , a measure of the dollar against a basket of major currencies, was down 0.04% at 83.83.

KLSE IForex Recommendations

TRADING TIPS :

GBP/USD hit 1.5225 during European morning trade, the session high; the pair subsequently consolidated at 1.5212, adding 0.20%. Cable was likely to find support at 1.5074, the low of January 13 and resistance at 1.5270, the high of January 14.The dollar showed little reaction to data on Thursday showing that the number of people who filed for unemployment assistance in the U.S. last week rose to a four-month high of 316,000, compared to expectations for a decline of 6,000.The pound edged higher against the U.S. dollar on Friday, but were held in check as demand for the greenback remained broadly supported despite Thursday\’s mixed bag of U.S. Data. A separate report showed that U.S. producer prices fell by the most in three years in December, falling 0.3% as energy costs tumbled.



INTRADAY OUTLOOK:
Support: 1.5193
Resistance: 1.5266

RECOMMENDATION:
1. Buy GBP/USD Above 1.5268-TG: 1.5288/1.5318 SL 1.5238
2. Sell GBP/USD Below 1.5190-TG: 1.5170/1.5140 SL 1.5220

INTRADAY OUTLOOK
Immediate Support: 1.1688
Immediate Resistance: 1.1758

RECOMMENDATION:
1. Buy EUR/USD Above -1.1760 TG: 1.1780/1.1810 SL 1.1730
2. Sell EUR/USD Below -1.1685 TG:1.1665/1.1635 SL 1.1715

KLSE Stock Recommendations

MARKET UPDATES :

Genting Bhd announced that DNA Electronics Limited (DNAe), its indirect 82.1 per cent-owned subsidiary, has completed the acquisition of the entire issued share capital of NanoMR, Inc (NanoMR) for a total cash consideration of about US$24.0 million (US$1= RM3.57).In a filing to Bursa Malaysia today, Genting said the acquisition was completed by way of a merger under the laws of Delaware, United States.NanoMR is a development-stage diagnostics company based in New Mexico while DNAe undertakes research and development on technologies for genetic analysis and sequencing.

STOCK RECOMMENDATION :

BUY MPHB CAPITAL ABOVE 2.105 TARGET 2.145 2.245 SL 1.040

KLSE Comex Recommendations

INTERNATIONAL COMMODITY NEWS :

Oil prices slumped in early Asia on Monday as the supply outlook remains robust despite a sustained drop in prices of more than 50% in the past six months.On the New York Mercantile Exchange, crude oil for delivery in February eased 0.78% at $48.75 a barrel. Last week, oil prices rallied sharply on Friday, as bullish comments made by the International Energy Agency helped ease concerns over a glut in global supplies. For the week, New York-traded oil futures inched up 33 cents, or 0.67%, the first weekly gain in eight weeks.Elsewhere, on the ICE Futures Exchange in London, Brent for March delivery jumped $1.90, or 3.94%, to settle at $50.17 a barrel on Friday.The International Energy Agency cut its forecast for the increase in non-OPEC oil supply this year by 350,000 barrels a day, amid indications lower prices had begun to curb output in some areas, including North America.

TRADING STRATEGY :
BUY GOLD ABOVE 1285 TARGET 1290 1296 SL 1279
SELL GOLD BELOW 1272 TARGET 1267 1261 SL 1278

Gasoline Market Update

Nymex reformulated gasoline blendstock for February NGG15, -3.83%  —the benchmark gasoline contract—rose was flat at $1.3580 a gallon, while February diesel traded at $1.6649, 7 points lower.

ICE gasoil for February changed hands at $478.50 a metric ton, up $6.25 from Friday’s settlement.