USDINR opened at 73.67 on Thursday and the pair traded in the 73.52-73.67 range. Spot USDINR closed at 73.55 , loss of 21 ps for USD as against prior close of 73.76. RBI reference rate was fixed at 73.81 on 23/12. Dec USD/INR closed at 73.56, loss of 19 ps for USD as compared to prior day’s close of 73.75. Dec Euro/INR closed at 89.67, GBP/INR at 99.97 and Yen/INR at 71.
FII’S nett bought Rs 47510 Cr of Indian Equities in Dec . FII’S nett bought Rs 3314 Cr of Indian debt securities in Dec . In this financial year, FII’S have nett bought Rs 206420 Cr of Equities and have sold Rs 23156 Cr in debt. In FY 19-20, FII’s sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 1.03% on Thursday.DOW climbed 70 points (0.23%) on Thursday.Nikkei declined 0.04% and Hang seng climbed 0.16%.
Euro closed the week at 1.2210,Pound at 1.3533,Yen at 103.57.
Commodities: Gold is now at USD 1883 and WT1Crude at USD 48.30/Brent at USD 51.40.
Interest rates: USD 10 Yr yield is at 0.95% and 3 m libor closed at 0.23%. Indian 10 yr benchmark yield closed at 5.97%.
Economic news: UK and EU announced the much awaited trade deal after 4 years of procedural wrangles. UK is now effectively out of EU policies and the uncertainty has ended. GBP gained past 1.35 against USD, on expectation of this deal.
USD is ending the year on a weak footing due to ultra-loose monetary policy by Fed, increase in fiscal and trade deficit and lower demand for safe assets due to vaccination against corona.
US President has refused to sign USD 2.3 trn stimulus package passed by US Congress and Senate, claiming that unemployment benefit of USD 600 is very low and has asked lawmakers to increase it to USD 2000. Without his assent, US Govt spending will dry forcing shutdown.
Data highlights: – No data release.
Monday’s calendar: – No major data
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below 100 and 200 day moving average. 20 day moving average is at 73.73. 50 day moving average is at 73.87.200 day moving average is at 74.65. Daily MACD is in buy zone, implying bottom at 73.40. Important support is at 73.40 and important resistance is at 73.95/74.40 . Spot closed below average level of the day.
Intra day supports and resistances for Dec contract are:
PP:73.61,S1:73.46, S2:73.37, R1:73.70, R2: 73.85.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above all major moving averages. Next Major resistance is at 1.2470. Major support is at 1.2060/1.1960. Daily MACD is in buy zone, implying an important bottom at 1.1610. Weekly MACD is in buy zone, implying important bottom at 1.1610.
GBP/USD: The pair is above major moving averages . Daily MACD is in buy zone, implying important bottom at 1.3135 and weekly MACD is in buy zone, implying important bottom at 1.2675. Important support is at 1.3225/1.31355 . Important resistance is at 1.3625/1.3710.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 104.75. Next important resistance is at 104.75/105.70. Important support is at 103//101.20.
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