USDINR opened at 71.86 y’day and the pair traded in the 71.79-71.90 range. Spot USDINR closed at 71.89 , loss of 11 ps for USD as against prior close of 72. RBI reference rate was fixed at 71.86 y’day. Feb USD/INR closed at 71.89, loss of 11 ps for USD as compared to prior day’s close of 72. Feb Euro/INR closed at 77.89, GBP/INR at 93.27 and Yen/INR at 65.08.
FII’S nett bought Rs 10750 Cr of Indian Equities in Feb till date . FII’S have nett bought Rs 10618 Cr of Indian debt securities in Feb till date.
Benchmark Nifty declined 0.27% Y’day. DOW declined 870 points (3.15%) Y’day. Nikkei declined 3.34% and Hang seng climbed 0.27% Y’day.
Euro is now at 1.0865,Pound at 1.2997,Yen at 110.52.
Commodities: Gold is now at USD 1641 and WT1Crude at USD 50.30/Brent at USD 54.65.
Interest rates: USD 10 Yr yield is at 1.37% and 3 m libor closed at 1.71%. Indian 10 yr benchmark yield closed at 6.33%.
Economic news: Risk aversion dominates the financial markets as global outbreak of China’s Wuhan coronavirus worsens.US markets suffered the third worst single day fall in its history.
Data highlights : – – US house price index climbed 2.9% y/y
-German GDP was flat Q/Q.
Wednesday’s calendar:US New home sales
| USD/INR | 71.90 | 71.79 | |
| EUR/USD | 1.0865 | 1.0890 | 1.0830 |
| GBP/USD | 1.2997 | 1.3018 | 1.2915 |
| USD/JPY | 110.52 | 111.05 | 109.89 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.0866 | 1.0902 | 1.0926 | 1.0962 | 1.0842 | 1.0806 | 1.0782 |
| GBP/USD | 1.2979 | 1.3043 | 1.3083 | 1.3147 | 1.2940 | 1.2875 | 1.2836 |
| USD/JPY | 110.41
|
110.93 | 111.57 | 112.08 | 109.77 | 109.25 | 108.61
|
| USD/INR | 71.86 | 71.93 | 71.97 | 71.82 | 71.75 |
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
| Curency Pair | Supports | Resistances | Trend | Remarks |
| EURO/USD | 1.05 | 1.0880/1.10 | DN | SIDE>1.10 |
| GBP/USD | 1.2875/1.27 | 1.3070/1.3270 | SIDE | UP>1.3070 |
| USD/JPY | 110.30 | 112.40 | UP | DN<108.30 |
| USD/INR | 71.50/71.30 | 72.05/72.25 | SIDE | DN<71.30 |
| USD/CHF | 0.96 | 0.9840 | SIDE | UP>0.9840 |
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 71.39. 50 day moving average is at 71.27.200 day moving average is at 70.60. Daily MACD is in buy zone, implying bottom at 70.73. Important support is at 71.50/71.35 and next important resistance is at 72.05/72.25 Spot closed above its average level of the day.
Intra day supports and resistances for Feb contract are:
PP: 71.87,S1:71.82, S2:71.75, R1:71.94, R2:71.99
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 1.10. Major support is at 1.05. Daily MACD is in sell zone, implying an important top at 1.1240. Weekly MACD is in sell zone, implying important top at 1.1240.
GBP/USD: The pair has turned sideways but still above major moving averages.Daily MACD is in sell zone, implying important top at 1.3070 and weekly MACD is in sell zone, implying important top at 1.3515. Important resistance is at 1.3285. Important support is at 1.2855 and later at 1.27.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 108.30. Next important resistance is at 112.40. Important support is at 110.30/108.30.
