USDINR opened higher at 72.02 y’day and the pair traded in the 71.88-72.18 range. Spot USDINR closed at 72.02, gain of 17 ps for USD as against prior close of 71.85. RBI reference rate was fixed at 72.04. Rupee stabilized as Govt moved swiftly to appoint a new Governor. Dec USD/INR closed at 72.14, gain of 11 ps for USD as compared to prior day’s close of 72.03. Dec Euro/INR closed at 81.87, GBP/INR at 90.51 and Yen/INR at 63.69.
FII’S have sold Rs 109 Cr in Indian Equities in Dec . FII’S have bought Rs 9143 Cr of Indian debt securities in Dec till date . On a cumulative basis, FII’S have sold Rupees 26791 Cr of Indian Equities till date for this calendar year and have sold Rupees 47914 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 1.79% y’day. DOW climbed 34 points (0.14%) y’day. Nikkei climbed 2.15% and Hang seng climbed 1.61% y’day.
Euro is now at 1.1371, Pound at 1.2622,Yen at 113.45.
Commodities: Gold is now at USD 1249 and WT1Crude at USD 51.42 /Brent at USD 60.50.
Interest rates: USD 10 Yr yield is at 2.856% and 3 m libor closed at 2.75%. Indian 10 yr benchmark yield closed at 7.59%.
Economic news: US – China trade talks resumed and helped Global sentiments. US President said that Fed Chairman is very aggressive on interest rate hike. Indian markets rallied on hopes that new RBI Governor may be more helpful is easing lending norms and smoothen relationship with Govt.
Data highlights : – -US PPI climbed 0.1% m/m. CPI was flat m/m.
-German and EU Zew surveys improved to -17.5 and -21 respectively. EU industrial production climbed 0.2% m/m.
-UK claimant count change was reported at 21.9 k and unemployment rate held steady at 4.1%.
Thursday’s calendar:US weekly jobless claims
| USD/INR | 72.18 | 71.88 | |
| EUR/USD | 1.1371 | 1.1387 | 1.1316 |
| GBP/USD | 1.2622 | 1.2631 | 1.2616 |
| USD/JPY | 113.45 | 113.50 | 113.29 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.1359 | 1.1402 | 1.1430 | 1.1473 | 1.1331 | 1.1288 | 1.1260 |
| GBP/USD | 1.2591 | 1.2704 | 1.2785 | 1.2898 | 1.2510 | 1.2397 | 1.2316 |
| USD/JPY | 113.32
|
113.49 | 113.69 | 113.86
|
113.12 | 112.95 | 112.75
|
| USD/INR | 72.02 | 72.17 | 72.33 | 71.86 | 71.71
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Curency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.1215 | 1.1500/1.1620 | DOWN | SIDE>1.15 |
| GBP/USD | 1.2660 | 1.3175/1.33 | DOWN | UP>1.3175 |
| USD/JPY | 112.30/111.30 | 114.10 | UP | DN<111.35 |
| USD/INR | 69.50 | 71 | SIDE | UP>71 |
| USD/CHF | 0.9845 | 1.0130 | UP | DN <0.9845 |
Technicals: Spot closed avove 20,100 and 200 day movong averages but still below 50 day major moving average. 20 day moving average is at 71.24. 50 day moving average is at 72.50. 200 day moving average is at 68.78. Daily MACD is in buy zone, implying bottom at 69.50 . Important support zone is at 69.50. Spot closed above its average level of the day.
Intra day supports and resistances for DEC contract are:
PP: 72.16,S1:71.97, S2:71.81, R1:72.32, R2:72.51.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Next Major resistance is at 1.1500 and later at 1.1620. Major support is at 1.12. Daily MACD is in buy zone, implying an important bottom at 1.1215. Weekly MACD is in sell zone, implying important top at 1.1805.
GBP/USD: The pair is below 200 day moving average.Trend is sideways in daily chart. Daily MACD is in sell zone, implying important top at 1.3175 and weekly MACD is in buy zone, implying important bottom at 1.2665. Important resistance is at 1.3175 and later at 1.33. Important support is at 1.2660.
USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 114. Next important support is at 112.30/111.35. Important resistance is at 114.10./
