USDINR opened at 71.67 Y’day and the pair traded in the 71.48-71.68 range. Spot USDINR closed at 71.49 y’day, loss of 24 ps for USD as against prior close of 71.71. RBI reference rate was fixed at 71.65 on Monday. Nov USD/INR closed at 71.50, loss of 25 ps for USD as compared to prior day’s close of 71.75. Nov Euro/INR closed at 78.74, GBP/INR at 91.95 and Yen/INR at 65.62.
FII’S nett bought Rs 15557 Cr of Indian Equities in Nov . FII’S have nett bought Rs 75807 Cr of Indian Equities in this calendar Year till date. FII’S have nett sold Rs 881 Cr of Indian debt securities in Nov. FII’S have nett bought Rs 42277 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 0.30% y’day. DOW climbed 190 points (0.68%) y’day. Nikkei climbed 0.% and Hang seng declined 0.29% y’day.
Euro is now at 1.1016 ,Pound at 1.2853,Yen at 109.11.
Commodities: Gold is now at USD 1466 and WT1Crude at USD 58.20./Brent at USD 62.98.
Interest rates: USD 10 Yr yield is at 1.7640% and 3 m libor closed at 1.93%. Indian 10 yr benchmark yield closed at 6.48%.
Economic news: Fed Chair Jerome Powell said yesterday that “monetary policy is now well positioned to support a strong labor market and return inflation decisively to our symmetric 2 percent objective.” He added that “if the outlook changes materially, policy will change as well.” The comments reaffirmed the case that Fed has done with mid-cycle adjustment. The default position is to hold interest rates unchanged at current level.
Data highlights : -US house price index climbed 2.1% y/y, consumer confidence and new home sales.
Wednesday’s calendar: – US durables order, weekly jobless claims
-US Personal income, spending and Core PCE index
-US Weekly jobless claims and Chicago PMI.
| USD/INR | 71.74 | 71.61 | |
| EUR/USD | 1.1016 | 1.1026 | 1.1007 |
| GBP/USD | 1.2853 | 1.2904 | 1.2836 |
| USD/JPY | 109.11 | 109.19 | 108.88 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.1019 | 1.1031 | 1.1038 | 1.1049 | 1.1012 | 1.1000 | 1.0994 |
| GBP/USD | 1.2867 | 1.2898 | 1.2935 | 1.2966 | 1.2830 | 1.2799 | 1.2762 |
| USD/JPY | 109.06
|
109.25 | 109.38 | 109.56 | 108.93 | 108.74 | 108.61
|
| USD/INR | 71.55 | 71.62 | 71.75 | 71.42 | 71.35 |
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Curency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.0990/1.0880 | 1.11/1.1180 | DN | UP>1.1180 |
| GBP/USD | 1.2705/1.2585 | 1.30 | UP | DN<1.2440 |
| USD/JPY | 107.90/106.50 | 109.50/110.65 | UP | DN<107.50 |
| USD/INR | 71.55/71.30 | 72.45 | UP | DN<71.05 |
| USD/CHF | 0.9980 | 0.9840 | UP | DN<0.9840 |
Technicals: Spot closed above 100 and 200 day moving average. 20 day moving average is at 71.34. 50 day moving average is at 71.22.200 day moving average is at 70.28. Daily MACD is in buy zone, implying bottom at 70.55. Important support is at 71.60/71.30 and next important resistance is at 72.45. Spot closed above its average level of the day.
Intra day supports and resistances for Nov contract are:
PP: 71.55,S1:71.42, S2:71.33, R1:71.63, R2:71.77
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 1.11/1.1180. Major support is at 1.10 and later at 1.0870. Daily MACD is in sell zone, implying an important top at 1.11. Weekly MACD is in buy zone, implying important bottom at 1.0870.
GBP/USD: The pair is sideways but is still trading above 200 day moving average.Daily MACD is in sell zone, implying important top at 1.30 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 1.27 and later at 1.2550.
USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 109.50. Next important resistance is at 109.50/110.65. Important support is at 107.85/106.50.
