USDINR opened at 69.71 Y’day and the pair traded in the 69.71-69.93 range. Spot USDINR closed at 69.87, gain of 4 ps for USD as against prior close of 69.83. RBI reference rate was fixed at 69.61 on Tuesday. June USD/INR closed at 70.06, no change for USD as compared to prior day’s close of 69.88. June Euro/INR closed at 78.24, GBP/INR at 88.64 and Yen/INR at 63.97.
FII’S have nett sold Rs 1135 Cr of Indian Equities in May till date. FII’S have nett bought Rs 66925 Cr of Indian Equities in this calendar Year till date. FII’S have sold Rs 1552 Cr of Indian debt securities in May. FII’S have nett sold Rs 2662 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.71% Y’day. DOW climbed 43 points (0.17%) y’day. Nikkei declined 0.29% and Hang seng declined 0.44 % y’day.
Euro is now at 1.1134 ,Pound at 1.2612,Yen at 109.22.
Commodities: Gold is now at USD 1290 and WT1Crude at USD 56.03/Brent at USD 64.68.
Interest rates: USD 10 Yr yield is at 2.227% and 3 m libor closed at 2.61%. Indian 10 yr benchmark yield closed at 7.13%.
Economic news: Indian GDP data awaited later today. US Q1 GDP growth was revised down to 3.1% annualized, from first estimate of 3.2%, matched expectations. GDP price index was revised down to 0.8% down from 0.9% and missed expectation of 0.9%. US trade deficit widened slightly to USD 72.1B in April, up from USD 71.9B.
Data highlights : – US weekly jobless claims dipped to 215k, pending home sales declined -1.5% m/m and GDP(preliminary) climbed 3.1% y/y.
Friday’s calendar: – US Personal income, spending and Core PCE index
-German retail sales
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed between major moving averages. 20 day moving average is at 69.83. 50 day moving average is at 69.48.200 day moving average is at 70.80. Daily MACD is in sell zone, implying top at 70.54. Important support zone is at 69.35.Important resistance is at 70.50 and later at 70.80 .Spot closed above its average level of the day.
Intra day supports and resistances for June contract are:
PP: 70.02,S1:69.92, S2:69.79, R1:70.15, R2:70.25.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below all major moving averages. Next Major resistance is at 1.1265. Major support is at 1.1110 and later at 1.0970. Daily MACD is in sell zone, implying an important top at 1.1265. Weekly MACD is in sell zone, implying important top at 1.1570.
GBP/USD: The pair has turned bearish and is trading below major moving averages.Daily MACD is in sell zone, implying important top at 1.3175 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.2775 and later at 1.2865. Important support is at 1.2480.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 112.40. Next important resistance is at 110.70 and later at 112.40. Important support is at 108.50 and later at 107.75.