FX – MORNING UPDATE :
USDINR opened at 83.19 y’day and the pair traded in the 83.16-83.22 range. Spot USDINR closed at 83.19, gain of 11 ps for USD as against prior close of 83.08.
RBI reference rate was fixed at 83.18 on 03/10. Oct USD/INR closed at 83.30, gain of 14 ps for USD as compared to prior day’s close of 83.16. Oct Euro/INR closed at 87.36, GBP/INR at 100.54 and Yen/INR at 55.84. 1 year USDINR fwd premia was trading at around 1.80% p.a. FX reserves declined by USD 3 bn and stood at USD 590 bn as on Sept 22 nd.
|
PAIRS |
RBI REF RATE (03/10) |
|
USDINR |
83.18 |
|
EURINR |
87.07 |
|
GBPINR |
100.40 |
|
JPYINR |
55.50 |
In Sep, FPI’S have sold Rs 16026 Cr of Equities and bought Rs 768 Cr of debt . In 2022-23 fiscal year, FII’S have net sold Rs 27593 Cr of Equities and have net bought Rs 838 Cr of debt.
Benchmark Nifty declined 116 points (0.59%) y’day. US S&P declined 59 points (1.37%) . Nikkei declined 1.83% and Hang Seng declined 3%.
Euro is now at 1.0460, Pound at 1.2065, Yen at 149.27.
Commodities: Gold is now at USD 1821 and WT1Crude at USD 89/Brent at USD 91.
Interest rates: USD 10 Yr yield is at 4.81% and 3 m libor closed at 5.65%. Indian 10 yr benchmark yield closed at 7.22%.
Economic news: Indian PMI(mfrg) dipped marginally to 57.5 from 58.6 in Aug. This is the 27 th straight month of manufacturing expansion. RBI Credit policy statement is due on Friday. RBI is expected to maintain status quo.
US ISM(services) and employment data are crucial Global events for the week.
Data highlights: – No major data release.
Wednesday’s calendar : US ADP employment report, ISM(services) and factory orders
-EU PMI(services-final), PPI and retail sales
-UK PMI(services)
|
USD/INR |
|
83.21 |
83.16 |
|
|
EUR/USD |
1.0460 |
1.0495 |
1.0448 |
|
|
GBP/USD |
1.2065 |
1.2103 |
1.2052 |
|
|
USD/JPY |
149.27 |
150.18 |
147.38 |
Daily Support/Resistance table
|
Currency Pairs |
Pivot |
R1 |
R2 |
R3 |
S1 |
S2 |
S3 |
|
EURO/USD |
1.0461 |
1.0490 |
1.0515 |
1.0536 |
1.0443 |
1.0423 |
1.0397 |
|
GBP/USD |
1.2076 |
1.2100 |
1.2127 |
1.2152 |
1.2049 |
1.2025 |
1.1998 |
|
USD/JPY |
148.86 |
150.34 |
151.66 |
153.14 |
147.54 |
146.06 |
144.73 |
|
USD/INR |
83.19 |
83.22 |
83.25 |
|
83.16 |
83.13 |
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
|
Currency Pair |
Supports |
Resistances |
Trend |
Remarks |
|
EURO/USD |
1.0250 |
1.0740 |
DN |
SIDE>1.0740 |
|
GBP/USD |
1.18 |
1.2550/1.2620 |
DN |
SIDE>1.2550 |
|
USD/JPY |
145.90 |
151 |
UP |
SIDE<145.90 |
|
USD/INR |
82.80 |
83.35/83.47 |
UP |
SIDE<82.78 |
|
USD/CHF |
0.8820 |
0.9150 |
UP |
SIDE<0.8820 |
Technicals: Spot closed above 50 and 200 day moving averages.20 day moving average is at 83.10. 50 day moving average is at 82.80.200 day moving average is at 82.41. Daily MACD is in buy zone. Important support is at 82.80 and important resistance is at 83.35. Spot closed above the average level of the day.
Intraday supports and resistances for Oct contract are:
PP: 83.30, S1:83.27, S2:83.24, R1:83.33, R2:83.36.
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USD exports be hedged at 83.30/83.50. Imports be hedged at 82.80/82.65 for 1 month.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Major resistance is at 1.0740/1.0945. Next major support is at 1.0250. Daily MACD is in sell zone, implying an important top at 1.1275. Weekly MACD is in sell zone, implying important top at 1.1275.
GBP/USD: The pair is below 50 and 200 day averages. Daily MACD is in sell zone, implying important top at 1.3145 and weekly MACD is in sell zone, implying important top at 1.3145. Important support is at 1.18. Important resistance is at 1.2550/1.2620.
USD/YEN: The pair is above 50 and 200 day major averages. Daily MACD is in buy zone, implying important bottom at 144.40. Important resistance is at 151 and support is at 145.90/144.40.