USDINR
USDINR opens below Rs 67.00 on likely FII inflows into local shares
Dollar/rupee opens at over two-month low and trading at 66.9675, down by 0.66% on likely overseas fund inflows into local shares after the Federal Reserve hinted at a slower than expected pace of interest rate hikes in 2016.
The Fed opted to leave its key policy rate unchanged at 0.25% to 0.50% today, while also lowering its projections for the pace of future rate hikes.
Nevertheless, as inflation continues to rise and global risks diminish further, we expect the Fed will resume raising interest rates in June.
The central bank forecasted rates would continue to raise in 2016, but low inflation, problems overseas and turbulent stocks have forced the Fed to keep its ultra-accommodative policy in place.
The Fed now signals two rate hikes in 2016 instead of four envisioned at December 2015 policy.
Technical Review
USDINR retraced from the day high 67.6075 and tested 67.3825 before closing at 67.4025 levels. A long bearish candle stick formation on EOD chart is indicating downwards move 67.00 and below
Today, any rise towards 67.00-67.10 is expected to attract huge selling activities target would be 66.85-66.55. Stop loss above 67.25.
EURINR
EUR surged to its highest level in a month, as the dollar fell precipitously on Wednesday afternoon after the Federal Reserve lowered its interest rate forecast at a closely-watched meeting.
Technical Review:
EURINR settled down by 0.29% at 74.7450 levels. On EOD chart pair settled below the medium term MA which is indicating for bearishness in EURINR.
Today, pair witnessed more than half percent positive opening and trading at 75.1550 levels. Near term strong resistance is seen at 75.50 sustain trade above only will expect to test 75.80-76.00.
Else, failure the break could witness correction towards 74.70-74.50 again. Hence, intraday sell around 75.20-75.30. Stop loss above 75.50.
Great British Pound
The pound was at two-week lows against the dollar on Wednesday after as investors awaited the U.K. annual budget later in the day, but losses were held in check after the latest employment report showed a pick-up in wage growth.
Technical Review
GBPINR continued its recent bearish trend and settled down by 0.63% at 95.0425 levels. On the EOD chart a long bearish candle stick is yet indicating for bearishness in GBPINR. On the other hand, immediate resistance is seen at 96.50 sustain trade above only will expect to test 97.00
Today, Bank of England policy meet at 5.30pm will have strong impact on the pound, but near term trend is expect to remain bearish and break below 95.40 will expect to test 95.0-94.80. Stop loss above 95.60
More will update soon only on our Android App!!
