Trade for Today

As we expected on our yesterday's blog Fed Chairman was more concern about unemployment hence he sound firm about his current ongoing bond buying plan until unemployment doesn't come down at gratifying level and it's not expected before 2015 though Mr. Bernanke’s statements were strong enough to supports stocks bull rally but it actually fail to do so after reports came from Caterpillar and FedEx about low sales and lowering profit margin respectively. Caterpillar, the biggest maker of construction and mining equipment, said global retail sales of its machines fell 13% for the three-month rolling period through February, compared with the same year-ago period and FedEx cut its May fiscal-year profit forecast to between $6 and $6.20 a share, down from its December estimate of earning as much as $6.60.Overall, profit expectations for 2013 have been coming down for companies in the S&P 500, according to Fact Set data. Meanwhile Cyprus is looking towards Russia as a fund option after parliament rejected troika plan but in such case market will be more messy and EU credibility will be at stake but it any case it going to be difficult for Cyprus and it will put EU countries and Euro again on sticky wicket. In the coming days, Cyprus may have to choose between a European bailout that punishes savers - including both ordinary Cypriots and much richer Russian investors - and a deal with Moscow with as yet unknown strings attached. At worst, it could emerge with its financial system - by far the biggest contributor to the economy - in ruins along with relations with its closest allies.

Following are trade calls for today,

• Buy Gbp/Usd at 1.5065 stop below 1.5010 target 1.5190
• Sell Eur/Usd at 1.2985 stop above 1.3030 target 1.2910
• Sell Usd/Jpy at 96.00 stop above 96.75 target 95.05
• Sell German 30(Dax) at 8010 stop above 8075 target 7940

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