IEA trims oil demand views on weak economic data

LONDON (MarketWatch) -- The International Energy Agency said on Tuesday that it has lowered its forecasts for global oil demand for 2011 and 2012 by 160,000 barrels a day and 200,000 barrels a day, respectively, due to the "more precarious economic backdrop" and weaker fourth-quarter data. "Uncertain prospects for the single European currency continue to provide added downside risk to current economic growth estimates," the IEA said in its monthly oil report. The agency now expects global oil demand to average 89.0 million barrels a day in 2011 and 90.3 million barrels a day in 2012.

China gets fresh chance to float the yuan

Economic gloom is deepening in China and abroad, forcing extraordinary measures. Responding to the euro zone’s debt crisis, for example, six central banks led by the U.S. Federal Reserve recently lowered the cost of emergency U.S. dollar funding for European banks. And at home, the People’s Bank of China cut the reserve requirement ratio for commercial lenders by 0.5 percentage points.

Rupee Overview 13th Dec

Buy @ 53.3 stop @ 53 tgt 53.55 - 53.8 intrday

Trading and sustain above 53 will bring to 53.9 - 54.4 - 55 in near term, where we are buying from 51.5 level and expect to halt at 55 around. CMP is 53.5 and hold long advise

USD/INR: Rupee yesterday which open at the level of 52.25 per$ failed to trade below 52.2 and traded side way to upsdei for the day and breached the higher resistance of 52.8 and closing was seen above 53 per$ which was the near term highe on closing basis. Today opening is seen positive around 53.2per$ where it failed to cross the lower level of 53 per$ and is trading at 53.36$ nearing the resistance of 53.4per$. If sustain trading is seen above 53.4 will bring to higher level of 53.8per$ to 54.5 per$ which will be just the extension target of the rise what we have been seen in past days. Where on lower side it’s not expected to trade below 52.8 per$ on closing basis and any dip will be buying opportunity where on higher side if sustain trading above 53.4per$ will spark the higher target of 53.8 per$ to 54.5 per$ in near term. Stochastic has reverted from the lower zone with positive intersection and is trading at 60% zone with positive intersection where buying can be seen in near term.