USDINR opened at 71.09 y’day and the pair traded in the 70.89-71.12 range. Spot USDINR closed at 70.96 y’day, loss of 2 ps for USD as against prior close of 70.98. RBI reference rate was fixed at 70.88 on Wednesday. Nov USD/INR closed at 71.06, loss of 5 ps for USD as compared to prior day’s close of 71.11. Nov Euro/INR closed at 78.86, GBP/INR at 91.37 and Yen/INR at 65.18.
FII’S nett bought Rs 14656 Cr of Indian Equities in Oct . FII’S have nett bought Rs 60250 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 5055 Cr of Indian debt securities in Oct. FII’S have nett bought Rs 43158 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.42% y’day. DOW climbed 182 points (0.62%) y’day. Nikkei climbed 0.22% and Hang seng climbed 0.57% y’day.
Euro is now at 1.1053 ,Pound at 1.2815,Yen at 109.20.
Commodities: Gold is now at USD 1470 and WT1Crude at USD 56.91./Brent at USD 62.17.
Interest rates: USD 10 Yr yield is at 1.926% and 3 m libor closed at 1.93%. Indian 10 yr benchmark yield closed at 6.51%.
Economic news: BOE left rates unchanged at 0.75%, but two members voted for rate cut. BOE revised lower its GDP growth forecast to +1.2% y/y for 2020, compared with +1.3% projected in August. Inflation forecasts are downgraded across the board. Based on market interest rate, inflation in one year’s time is revised lower to 1.51%, from +1.9% in August. Pound declined as BOE opened the door for future easing.
Data highlights : – US Weekly jobless claims dipped to 211k.
-German industrial production declined -0.6% m/m.
Friday’s calendar: No major data release
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 100 and 200 day moving average. 20 day moving average is at 71.03. 50 day moving average is at 71.23.200 day moving average is at 70.22. Daily MACD is in sell zone, implying top at 71.73. Important support is at 70.55 and next important resistance is at 71.25 and later at 71.80. Spot closed below its average level of the day.
Intra day supports and resistances for Nov contract are:
PP: 71.09,S1:70.94, S2:70.83, R1:71.20, R2:71.35
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 1.1250. Major support is at 1.1070 and later at 1.10. Daily MACD is in buy zone, implying an important bottom at 1.0870. Weekly MACD is in buy zone, implying important bottom at 1.0870.
GBP/USD: The pair is bullish and is trading above moving averages.Daily MACD is in buy zone, implying important bottom at 1.22 and weekly MACD is in buy zone, implying important bottom at 1.20. Important resistance is at 1.30/1.31. Important support is at 1.2790 and later at 1.2585.
USD/YEN: The pair is between major moving averages. Daily MACD is in sell zone, implying important top at 109.30. Next important resistance is at 109.30. Important support is at 106.50.