USDINR opened at 71.74 y’day and the pair traded in the 71.59-71.79 range. Spot USDINR closed at 71.66 , loss of 23 ps for USD as against prior close of 71.89. RBI reference rate was fixed at 71.73 y’day. March USD/INR closed at 71.89, loss of 23 ps for USD as compared to prior day’s close of 72.12. March Euro/INR closed at 78.38, GBP/INR at 93.13 and Yen/INR at 65.21.
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 1.01% Y’day. DOW declined 123 points (0.46%) Y’day. Nikkei declined 0.79% and Hang seng declined 0.74% Y’day.
Euro is now at 1.0905,Pound at 1.2924,Yen at 110.24.
Commodities: Gold is now at USD 1652 and WT1Crude at USD 48.10/Brent at USD 52.20.
Interest rates: USD 10 Yr yield is at 1.31% and 3 m libor closed at 1.71%. Indian 10 yr benchmark yield closed at 6.33%.
Economic news: Global stock markets declined steeply amid growing fears about the spread of coronavirus and its impact on the world’s major economies, with officials now warning that an outbreak in the US is likely. Fed Vice Chairman said that FOMC will “proceed on a meeting-by-meeting basis and will be monitoring the effects of our recent policy actions along with other information bearing on the outlook as we assess the appropriate path of the target range for the federal funds rate.” Markets are however pricing two more rate cuts this year.
Data highlights : – US New home sales climbed to 764k.
Thursday’s calendar:- US Weekly jobless claims, durables order
-US GDP Q/Q, Pending home sales.
| USD/INR | 71.79 | 71.59 | |
| EUR/USD | 1.0905 | 1.0915 | 1.0885 |
| GBP/USD | 1.2924 | 1.3009 | 1.2896 |
| USD/JPY | 110.24 | 110.70 | 110.14 |
Daily Support/Resistance table
| CurrencyPairs | Pivot | R1 | R2 | R3 | S1 | S2 | S3 |
| EURO/USD | 1.0883 | 1.0911 | 1.0937 | 1.0965 | 1.0857 | 1.0829 | 1.0803 |
| GBP/USD | 1.2937 | 1.2978 | 1.3049 | 1.3090 | 1.2865 | 1.2825 | 1.2753 |
| USD/JPY | 110.40
|
110.66 | 110.96 | 111.23 | 110.10 | 109.84 | 109.54
|
| USD/INR | 71.68 | 71.77 | 71.88 | 71.57 | 71.48 |
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.
