FX MORNING UPDATE
USDINR opened at 75.67 Y’day and the pair traded in the 75.56-75.74 range. Spot USDINR closed at 75.71 , gain of 4 ps for USD as against prior close of 75.67. RBI reference rate was fixed at 75.65 Y’day. June USD/INR closed at 75.89, gain of 2 ps for USD as compared to prior day’s close of 75.87. June Euro/INR closed at 83.61, GBP/INR at 93.48 and Yen/INR at 70.41.
FII’S have nett bought Rs 6316 Cr of Indian Equities in May . FII’S have nett sold Rs 17610 Cr of Indian debt securities in May. In FY 19-20, FII’s have sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 3.17% Y’day. DOW climbed 553 points (2.21%) day. Nikkei climbed 0.70% and Hang seng declined 0.36% y’day.
Euro is now at 1.1029,Pound at 1.2271,Yen at 107.68.
Commodities: Gold is now at USD 1712 and WT1Crude at USD 32/Brent at USD 34.
Interest rates: USD 10 Yr yield is at 0.693% and 3 m libor closed at 0.44%. Indian 10 yr benchmark yield closed at 6.04%.
Economic news: Yuan weakened due to tensions centered around Hong Kong. US President has indicated powerful response to the situation before this weekend.
EU formally unveiled an unprecedented stimulus package to day, to “to protect lives and livelihoods, repair the Single Market, as well as to build a lasting and prosperous recovery” after coronavirus pandemic. Total financial power is boosted to EUR 1.85 trillion, with “New Generation EU” instrument of EUR 750B, as well as targeted reinforcements to the long term budget for 2021-2027.
Indian last quarter GDP is expected later this week.
Data highlights : No major data release.
Thursday’s calendar:- US weekly jobless claims, durables order and pending home sale
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 75.74. 50 day moving average is at 75.53.200 day moving average is at 72.20. Daily MACD is in sell zone, implying top at 76.90. Important support is at 75.25/74.90. Spot closed below its average level of the day.
Intra day supports and resistances for June contract are:
PP:75.88 ,S1:75.77, S2:75.66, R1:76, R2: 76.10
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 200 day major moving average. Next Major resistance is at 1.1050 and later at 1.1150. Major support is at 1.0725 and later at 1.0650. Daily MACD is in buy zone, implying an important bottom at 1.0750. Weekly MACD is in sell zone, implying important top at 1.15.
GBP/USD: The pair has turned bearish and is below major moving averages.Daily MACD is in sell zone, implying important top at 1.2650 and weekly MACD is in sell zone, implying important top at 1.3515. Important resistance is at 1.2250/1.2650. Important support is at 1.1945 and later at 1.14.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 106. Next important resistance is at 109.40 and later at 111.75. Important support is at 106/105.10.