USDINR opened at 71.08 on Friday and the pair traded in the 71.06-71.24 range. Spot USDINR closed at 71.19, gain of 15 ps for USD as against prior close of 71.04. RBI reference rate was fixed at 71.14. Jan USD/INR closed at 71.25, gain of 13 ps for USD as compared to prior day’s close of 71.12. Jan Euro/INR closed at 81.36, GBP/INR at 92.31 and Yen/INR at 65.17. Rupee has declined 2 Rupees since its recent level of 69.20 traded on 7 th Jan.
FII’S have sold Rs 1983 Cr of Indian Equities in Jan till date . FII’S have sold Rs 2460 Cr of Indian debt securities in Jan till date .
Benchmark Nifty closed flat on Friday. DOW climbed 336 points (1.38%) on Friday. Nikkei climbed 1.29% and Hang seng climbed 1.25 % on Friday.
Euro closed the week at 1.1371, Pound at 1.2883,Yen at 109.78.
Commodities: Gold is now at USD 1281 and WT1Crude at USD 53.73 /Brent at USD 62.60.
Interest rates: USD 10 Yr yield is at 2.78% and 3 m libor closed at 2.90%. Indian 10 yr benchmark yield closed at 7.31%.
Economic news: Breaxt and US-China trade talks dominated market headline last week. UK PM’S plan on Brexit was defeated. Progress in trade talks lifted stocks and Treasury yields. Pound gained on no deal Brexit and Euro declined as there is pessimism on EU growth. ECB and Bank of Japan policy decisions are major focus events for the coming week. With EU inflation declining further to 1.6% and growth being anaemic, ECB may repeat its caution on downside risks. BOJ is expected to release economic projections.
Data highlights : – US industrial production climbed 0.3% m/m.
-UK retail sales declined -0.9% m/m.
Monday’s calendar: – No major data. US bank holiday.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 20,50 and 200 day moving averages but still below 100 day major moving average. 20 day moving average is at 70.33. 50 day moving average is at 70.95. 200 day moving average is at 69.60. Daily MACD is in buy zone, implying bottom at 69.20. Important support zone is at 70.50 and later at 70.10. Spot closed above its average level of the day.
Intra day supports and resistances for Jan contract are:
PP: 71.22,S1:71.12, S2:71, R1:71.34, R2:71.44
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 200 day moving average. Next Major resistance is at 1.1620 and later at 1.17. Major support is at 1.1265/1.12. Daily MACD is in sell zone, implying an important top at 1.1572. Weekly MACD is in buy zone, implying important bottom at 1.1215.
GBP/USD: The pair is below 200 day moving average.Trend is sideways in daily chart. Daily MACD is in buy zone, implying important bottom at 1.2440 and weekly MACD is in buy zone, implying important bottom at 1.2440. Important resistance is at 1.31. Important support is at 1.2765 and later at 1.2440.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 105. Next important resistance is at 111/112.