USDINR opened at 69.12 on Friday and the pair traded in the 68.89-69.13 range. Spot USDINR closed at 68.91 y’day, loss of 13 ps for USD as against prior close of 69.04. RBI reference rate was fixed at 68.99 on Thursday. July USD/INR closed at 68.92, loss of 14ps for USD as compared to prior day’s close of 69.06. July Euro/INR closed at 76.75, GBP/INR at 85.67 and Yen/INR at 63.47.
FII’S have nett sold Rs 13813 Cr of Indian Equities in July . FII’S have nett bought Rs 65000 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 8758 Cr of Indian debt securities in July. FII’S have nett bought Rs 19124 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.29% on Friday. DOW climbed 51 points(0.19%) on Friday. Nikkei declined 0.45% on Friday and Hang seng declined 0.69% on Friday.
Euro closed the week at 1.1127 ,Pound at 1.2379,Yen at 108.68.
Commodities: Gold is now at USD 1418 and WT1Crude at USD 56/Brent at USD 63.20.
Interest rates: USD 10 Yr yield is at 2.08% and 3 m libor closed at 2.26%. Indian 10 yr benchmark yield closed at 6.52%.
Economic news: US GDP grew 2.1% annualized in Q2, better than expectation of 1.8%. GDP price index rose 2.4% qoq, below expectation of 4.0% qoq. GDP growth was contributed by personal consumption expenditures (PCE), federal government spending, and state and local government spending. They were partly offset by negative contributions from private inventory investment, exports, nonresidential fixed investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Data highlights : – USD GDP climbed 2.1% annualised.
Monday’s calendar: – BOJ policy meeting
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below major moving averages. 20 day moving average is at 68.75. 50 day moving average is at 69.25.200 day moving average is at 70.50. Daily MACD is in buy zone, implying bottom at 68.30. Next support is at 68.30. Important resistance is at 69.10 and later at 69.35 .Spot closed below its average level of the day.
Intra day supports and resistances for July contract are:
PP: 68.99,S1:68.82, S2:68.72, R1:69.09, R2:69.26
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Next Major resistance is at 1.1415. Major support is at 1.1110. Daily MACD is in sell zone, implying an important top at 1.1415. Weekly MACD is in sell zone, implying important top at 1.1415.
GBP/USD: The pair is bearish and is trading below major moving averages.Daily MACD is in sell zone, implying important top at 1.2580 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.26 and later at 1.2785. Important support is at 1.2130 and later at 1.20.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 107. Next important resistance is at 109 and later at 110.50. Important support is at 106.80 and later at 104.50.