FX MORNING UPDATE

                                                                                  

USDINR opened at 71.49 y’day and the pair traded in the 71.38-71.51 range. Spot USDINR closed at 71.44 Y’day, gain of 11 ps for USD as against prior close of 71.33. RBI reference rate was fixed at 71.39 on Monday. Jan USD/INR closed at 71.46, gain of 11 ps for USD as compared to prior day’s close of 71.35. Jan Euro/INR closed at 78.79, GBP/INR at 93.51 and Yen/INR at 65.60.

FII’S nett bought  Rs 13778 Cr of Indian Equities in Jan till date . FII’S have nett sold Rs 11373 Cr of Indian debt securities in Jan till date.

Benchmark Nifty declined 1.06% y’day. DOW declined 453 points (1.57%) Y’day. Nikkei declined 2.03% y’day and Hang seng was closed y’day.

Euro is now at 1.1025,Pound at 1.3073,Yen at 109.28.     

Commodities: Gold is now at USD 1571 and WT1Crude at USD 54.20/Brent at USD 60.62.

Interest rates: USD 10 Yr yield is at 1.6050% and 3 m libor closed at 1.89%. Indian 10 yr benchmark yield closed at 6.60%.

Economic news: Global stocks crashed as fears on coronavirus intensified. Focus is also on US GDP, FOMC meeting and Indian budget.

Data highlights : – German Ifo survey declined to 95.9.

-UK New home sales declined to 694k.

                                                                                                                       

Tuesday’s calendar: – US durables order and house price index.

USD/INR   71.51 71.38
EUR/USD 1.1025 1.1063 1.1020
GBP/USD 1.3073 1.3173 1.3056
USD/JPY 109.28 109.66 109.17

Daily Support/Resistance table

CurrencyPairs Pivot R1 R2 R3 S1 S2 S3
EURO/USD 1.1036 1.1052  1.1079    1.1009 1.0993  
GBP/USD 1.3100 1.3145  1.3218    1.3027 1.2983  
USD/JPY 109.37

 

109.57  109.86    109.08 108.88  

 

USD/INR 71.44 71.50 71.57   71.37 71.31

MAJOR SUPPORTS/RESISTANCES AND TREND TABLE

Curency Pair Supports Resistances Trend Remarks
EURO/USD 1.0990 1.1240 DN SIDE>1.1140
GBP/USD 1.2840/1.27 1.3285/1.3515 SIDE UP>1.3285
USD/JPY 108.50 110.30 UP DN<108.30
USD/INR 70.73/70.55 72.10 SIDE DN<71.03
USD/CHF 0.96 0.9840 DN UP>0.9930

 

Technicals: Spot closed above 200 day moving average. 20 day moving average is at 71.27. 50 day moving average is at 71.31.200 day moving average is at 70.39. Daily MACD is in buy zone, implying bottom at 70.73. Important support is at 71.03/70.73 and next important resistance is at 71.65. Spot closed above its average level of the day.  

Intra day supports and resistances for Jan contract are:

PP: 71.45,S1:71.38, S2:71.30, R1:71.53, R2:71.60.                                         

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 1.1240. Major support is at 1.0990 and later at 1.0870. Daily MACD is in sell zone, implying an important top at 1.1240. Weekly MACD is in buy zone, implying important bottom at 1.0870.

GBP/USD: The pair has turned sideways but still above major moving averages.Daily MACD  is in sell zone, implying important top at 1.3285 and weekly MACD is  in buy zone, implying important bottom at 1.20. Important resistance is at 1.3285. Important support is at 1.2840 and later at 1.27.

USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 110.30. Next important resistance is at 110.30. Important support is  at 108.50/107.70/ 106.50.

   

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