USDINR opened at 69.81 y’day and the pair traded in the 69.75-69.97 range. Spot USDINR closed at 69.90 y’day, loss of 11 ps for USD as against prior close of 69.79. RBI reference rate was fixed at 69.56 on Friday. June USD/INR closed at 70, loss of 11ps for USD as compared to prior day’s close of 69.89. June Euro/INR closed at 78.62, GBP/INR at 88.14 and Yen/INR at 64.42.
FII’S have nett bought Rs 339 Cr of Indian Equities in June . FII’S have nett bought Rs 78223 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 6953 Cr of Indian debt securities in June. FII’S have nett bought Rs 9631 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 1.28% y’day. DOW climbed 22 points (0.09%) y’day. Nikkei climbed 0.08% and Hang seng climbed 0.40 % y’day.
Euro is now at 1.1225 ,Pound at 1.2539,Yen at 108.42.
Commodities: Gold is now at USD 1343 and WT1Crude at USD 51.90/Brent at USD 62.27.
Interest rates: USD 10 Yr yield is at 2.09% and 3 m libor closed at 2.61%. Indian 10 yr benchmark yield closed at 6.93%.
Economic news: Indian CPI climbed to 3.07% in May. Food inflation climbed 1.83%.IIP climbed 3.6% in April. Trade deficit expanded to USD 15.36 bn, with exports climbing 3.3% and non oil imports climbing 2.9%. Crude Oil imports climbed 8.4%. Markets await US Fed decision. Fed could prepare the markets for a possible rate cut.
Data highlights : — NY mfrg index dipped to -8.6. TIC long term purchases was reported at 46.9 bn.
Tuesday’s calendar: – US building permits and housing starts.
-EU CPI and German Zew sentiment.
| USD/INR | 69.97 | 69.75 | |
| EUR/USD | 1.1227 | 1.1247 | 1.1204 |
| GBP/USD | 1.2537 | 1.2605 | 1.2533 |
| USD/JPY | 108.53 | 108.73 | 108.51 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.1225 | 1.1246 | 1.1268 | 1.1289 | 1.1203 | 1.1182 | 1.1161 |
| GBP/USD | 1.2560 | 1.2587 | 1.2632 | 1.2660 | 1.2515 | 1.2488 | 1.2443 |
| USD/JPY | 108.60
|
108.69 | 108.82 | 108.90
|
108.47 | 108.38 | 108.25
|
| USD/INR | 69.87 | 70 | 70.09 | 69.77 | 69.65 |
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Curency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.1110/1.0970/1.0840 | 1.1375 | SIDE | UP>1.1375 |
| GBP/USD | 1.2650 | 1.2865/1.3175 | DN | UP>1.30 |
| USD/JPY | 107.70 | 110.65 | DN | UP>110.85 |
| USD/INR | 69.65/69.30/69.06 | 70.06 | DN | UP>70.50 |
| USD/CHF | 0.9715 | 1.0050 | DN | UP >1.0080 |
Technicals: Spot closed between major moving averages. 20 day moving average is at 69.60. 50 day moving average is at 69.60.200 day moving average is at 70.85. Daily MACD is in buy zone, implying bottom at 69.06. Next support is at 69.06. Important resistance is at 70.06 and later at 70.50 .Spot closed above its average level of the day.
Intra day supports and resistances for June contract are:
PP: 69.96,S1:69.87, S2:69.74, R1:70.09, R2:70.18.
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 major moving average and hence bearish. Next Major resistance is at 1.1375. Major support is at 1.1110 and later at 1.0970. Daily MACD is in buy zone, implying an important bottom at 1.1106. Weekly MACD is in sell zone, implying important top at 1.1570.
GBP/USD: The pair is bearish and is trading below major moving averages.Daily MACD is in buy zone, implying important bottom at 1.2558 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.2865. Important support is at 1.2560.
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 107.75.
