USDINR opened at 68.54 Y’day and the pair traded in the 68.52-68.76 range. Spot USDINR closed at 68.71 Y’day, gain of 16 ps for USD as against prior close of 68.55. RBI reference rate was fixed at 68.58 on Monday. July USD/INR closed at 68.81, gain of 17ps for USD as compared to prior day’s close of 68.64. July Euro/INR closed at 77.35, GBP/INR at 85.60 and Yen/INR at 63.80.
FII’S have nett sold Rs 5107 Cr of Indian Equities in July . FII’S have nett bought Rs 73706 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 7291 Cr of Indian debt securities in July. FII’S have nett bought Rs 17656 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.64% Y’day. DOW declined 23 points(0.09%) y’day. Nikkei declined 0.69% y’day and Hang seng declined 0.77 % y’day.
Euro is now at 1.1213 ,Pound at 1.2414,Yen at 108.17.
Commodities: Gold is now at USD 1407 and WT1Crude at USD 57.70/Brent at USD 64.60.
Interest rates: USD 10 Yr yield is at 2.105% and 3 m libor closed at 2.30%. Indian 10 yr benchmark yield closed at 6.33%.
Economic news: USD rebounded on strong US retail sales, weak German Zew data and uncertain Brexit path. Market awaits US fed decision later this month.
Data highlights : US retail sales climbed 0.4% m/m and industrial production was flat m/m.
-EU Zew and German Zew surveys declined to -20.3 and -24.5 respectively.
-UK claimant change was 38k and unemployment rate was at 3.8%.
Wednesday’s calendar: – US building permits and housing starts
-EU CPI
-UK CPI, RPI and PPI(output)
| USD/INR | 68.76 | 68.52 | |
| EUR/USD | 1.1213 | 1.1264 | 1.1202 |
| GBP/USD | 1.2414 | 1.2520 | 1.2397 |
| USD/JPY | 108.17 | 108.38 | 107.88 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.1226 | 1.1250 | 1.1288 | 1.1311 | 1.1188 | 1.1164 | 1.1127 |
| GBP/USD | 1.2442 | 1.2487 | 1.2565 | 1.2611 | 1.2364 | 1.2319 | 1.2241 |
| USD/JPY | 108.15
|
108.43 | 108.65 | 108.93
|
107.93 | 107.65 | 107.43
|
| USD/INR | 68.66 | 68.80 | 68.90 | 68.56 | 68.42 |
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Curency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.1180/1.1110 | 1.1415 | UP | DN<1.1180 |
| GBP/USD | 1.2480 | 1.2785/1.2930 | DN | UP>1.28 |
| USD/JPY | 106.80 | 108.80/110 | DN | UP>110.50 |
| USD/INR | 68.30 | 69.05 | DN | UP>70 |
| USD/CHF | 0.97 | 1.0020 | DN | UP >1.0050 |
Technicals: Spot closed below major moving averages. 20 day moving average is at 68.90. 50 day moving average is at 69.45.200 day moving average is at 70.68. Daily MACD is in sell zone, implying top at 69.97. Next support is at 68.30. Important resistance is at 69.05 and later at 69.35 .Spot closed above its average level of the day.
Intra day supports and resistances for July contract are:
PP: 68.75,S1:68.66, S2:68.52, R1:68.90, R2:68.98.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is between major moving averages. Next Major resistance is at 1.1450. Major support is at 1.1180. Daily MACD is in sell zone, implying an important top at 1.1415. 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 sell zone, implying important top at 1.2785 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.2785 and later at 1.2930. Important support is at 1.2480
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 106.80. Next important resistance is at 108.80 and later at 110.40. Important support is at 106.80 and later at 104.50.
