USDINR opened at 69.47 y’day and the pair traded in the 69.11-69.47 range. Spot USDINR closed at 69.15 y’day, loss of 19 ps for USD as against prior close of 69.34. RBI reference rate was fixed at 69.33 on Tuesday. June USD/INR closed at 69.31, loss of 8ps for USD as compared to prior day’s close of 69.39. June Euro/INR closed at 78.75, GBP/INR at 87.83 and Yen/INR at 64.50.
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 climbed 0.43% y’day. DOW declined 11 points(-0.04%) y’day. Asian markets are trading higher today.
Euro is now at 1.1371 ,Pound at 1.2696,Yen at 107.76.
Commodities: Gold is now at USD 1411 and WT1Crude at USD 59.17/Brent at USD 65.43.
Interest rates: USD 10 Yr yield is at 2.04% and 3 m libor closed at 2.61%. Indian 10 yr benchmark yield closed at 6.93%.
Economic news: U.S. President Donald Trump and Chinese President Xi Jinping are due to meet at the June 28-29 G20 summit in Osaka. Investors are focusing on whether the two leaders can pave the way to resolve a trade dispute between the world’s two biggest economies. If trade issues are resolved, Fed may not be under compulsion to cut rates and that could support USD.
Oil prices surged as U.S. stockpiles of crude and refined products decreased.
Data highlights : — US House price index climbed 2.5% y/y and consumer confidence declined to 121.5.
-US durables order declined -1.3% m/m.
-US new home sales dipped to 626k.
Thursday’s calendar: – US Weekly jobless claims and pending home sales
-Japanese unemployment rate and CPI
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below major moving averages. 20 day moving average is at 69.64. 50 day moving average is at 69.52.200 day moving average is at 70.85. Daily MACD is in sell zone, implying top at 69.97. Next support is at 69.06. Important resistance is at 70 and later at 70.50 .Spot closed below its average level of the day.
Intra day supports and resistances for June contract are:
PP: 69.46,S1:69.12, S2:68.94, R1:69.64, R2:69.98.
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.