USDINR opened at 75.38 on Friday and the pair traded in the 75.35-75.59 range. Spot USDINR closed at 75.58 , gain of 1 ps for USD as against prior close of 75.57. RBI reference rate was fixed at 75.46 on Friday. June USD/INR closed at 75.81, gain of 8 ps for USD as compared to prior day’s close of 75.73. June Euro/INR closed at 85.90, GBP/INR at 95.80 and Yen/INR at 69.35.
FII’S have nett bought Rs 16875 Cr of Indian Equities in June . FII’S have nett sold Rs 681 Cr of Indian debt securities in June. In FY 19-20, FII’s have sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 1.13% on Friday. DOW climbed 829 points (3.15%) on Friday. Nikkei climbed 0.74% and Hang seng climbed 1.66% on Friday.
Euro closed the week at 1.1291,Pound at 1.2601,Yen at 109.09.
Commodities: Gold is now at USD 1688 and WT1Crude at USD 38.95/Brent at USD 41.97.
Interest rates: USD 10 Yr yield is at 0.894% and 3 m libor closed at 0.34%. Indian 10 yr benchmark yield closed at 5.82%.
Economic news: US non-farm payroll employment grew 2509k in May, well above expectation of -8000k decline. BLS said the improvements in the labor market reflected a “limited resumption of economic activity” curtailed in March and April due to coronavirus pandemic.Unemployment rate dropped to 13.3%, down from 14.7%, beat expectation of 19.6%. Number of unemployed persons dropped -2.1m to 21.0m. Participation rate also rose 0.6% to 60.8%. Average hourly earnings, however, dropped -1.0% mom, below expectation of 0.7% mom.
Global markets rallied and Oil climbed. Gold declined. Risk on rally is attributable to US employment data.
Data highlights : German factory orders declined -25.8% m/m.
Monday’s calendar:- EU sentix investor confidence and German industrial production.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 75.64. 50 day moving average is at 75.76.200 day moving average is at 72.50. Daily MACD is in sell zone, implying top at 76.90. Important support is at 75.05/74.90. Spot closed above its average level of the day.
Intra day supports and resistances for June contract are:
PP:75.71 ,S1:75.57, S2:75.34, R1:75.94, R2: 76.08
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above 50 and 200 day major moving average. Next Major resistance is at 1.15. Major support is at 1.1145 and later at 1.1020. Daily MACD is in buy zone, implying an important bottom at 1.0750. Weekly MACD is in buy zone, implying important bottom at 1.0650.
GBP/USD: The pair has turned sideways and is below 200 day major moving average.Daily MACD is in buy zone, implying important bottom at 1.2075 and weekly MACD is in buy zone, implying important bottom at 1.2275. Important resistance is at 1.2740. Important support is at 1.2350 and later at 1.2075.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 106. Next important resistance is at 111.75. Important support is at 108.10.