USDINR opened at 69.77 on Friday and the pair traded in the 69.52-69.78 range. Spot USDINR closed at 69.55 on Friday, gain of 11 ps for USD as against prior close of 69.44. RBI reference rate was fixed at 69.66 on Wednesday. June USD/INR closed at 69.63, gain of 12ps for USD as compared to prior day’s close of 69.51. June Euro/INR closed at 78.79, GBP/INR at 88.12 and Yen/INR at 64.80.
FII’S have nett sold Rs 118 Cr of Indian Equities in June . FII’S have nett bought Rs 77765 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 8047 Cr of Indian debt securities in June. FII’S have nett bought Rs 10725 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 0.91% on Friday. DOW gained marginally on Friday. Nikkei declined 0.95% and Hang seng declined 0.27% on Friday.
Euro is now at 1.1370 ,Pound at 1.2738,Yen at 107.39.
Commodities: Gold is now at USD 1400 and WT1Crude at USD 57.40/Brent at USD 65.10.
Interest rates: USD 10 Yr yield is at 2.06% and 3 m libor closed at 2.61%. Indian 10 yr benchmark yield closed at 6.86%.
Economic news: US-Iran tension eased as US President called off military action against Iranian targets at the last
minute. Trade talks optimism and Fed’s dovish stance spurred US markets. Euro rallied as PMI(mfrg) showed signs of
turnaround. Fed Vice Chairman said that though US economic growth is sound, there is a case for more monteray
accomodation due to trade uncertainites.
Data highlights : — US Weekly jobless claims declined to 216k. Existing home sales climbed to 5.34mn.
-EU PMI(mfrg) dipped to 47.8, PMI(services) climbed to 53.4.
-UK retail sales declined -0.5% m/m.
Monday’s calendar: – German Ifo business survey
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below major moving averages. 20 day moving average is at 69.60. 50 day moving average is at 69.55.200 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 below its average level of the day.
Intra day supports and resistances for June contract are:
PP: 69.69,S1:69.53, S2:69.44, R1:69.78, R2:69.94.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above major moving averages. Next Major resistance is at 1.1450. Major support is at 1.1180. Daily MACD is in buy zone, implying an important bottom at 1.1180. Weekly MACD is in buy zone, implying important bottom at 1.1108.
GBP/USD: The pair is bearish and is trading below major moving averages.Daily MACD is in buy zone, implying important bottom at 1.2510 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.2825 and later at 1.2930. Important support is at 1.2510.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 108.80. Next important resistance is at 108.80 and later at 110.40. Important support is at 107.10 and later at 104.50.