Dollar/rupee open down and Dollar index fell Thursday after the Bank of Japan decided to keep the interest rate unchanged at its policy meeting.
Meanwhile, the Federal Reserve monetary policy statement, released after a two day meeting, left short-term interest rates unchanged Wednesday and signaled no hurry to raise them in the weeks ahead, citing a mixed economic backdrop and lingering concerns about low inflation and global economic and financial developments.
A daily close below this resistance is appearing to set correction from every rise 66.90-67.10 in days to come unless it gives a closing above 67.30.
A break above 67.30 on closing basis only could result 67.55-67.80 upside move.
Dollar index having immediate support at 93.80 sustain trade below will expect to extend its downside move and currency may test 93.60-93.45 very soon, else failure of the break only could witness pullback towards 94.80-94.20 again (CMP 94.08)
Japanese Yen gained more than 1.75% against Rupee and nearly 2% against the dollar index
The yen jump sharply after the Bank of Japan monetary policy held steady as expected on Thursday at ¥80 trillion annually, and shunned further moves on negative interest rates even as downside risks to a 2% target rise.
USD/JPY changed hands at 109.34, down 1.89%, while JPY/INR traded at 61.05, up 1.72%.
Expectations of further easing were in place after Bloomberg reported that the BoJ could expand the negative interest rate policy it put in place in January at the conclusion of its rate review.
Earlier in Japan, household spending eased 5.3% year-on-year in March, more than the 4.2% drop expected. As well, national core CPI dropped 0.3% year-on-year for March, more than the 0.2% fall seen even as the unemployment rate dipped to 3.2% from an expected 3.3% level.
Bank of Japan kept its asset purchase target unchanged and pushed back the forecast date for hitting 2% inflation. Bank of Japan kept its deposit rate unchanged at 0.1%, while stating that the central bank will keep easing framework until 2% inflation target is achieved
Near term support is 60.90 sustain trade below only will expect to test 60.45-60.00 again, else JPYINR may test 61.45-61.80 on the upside very soon.
Near term support is 60.90 sustain trade below only will expect to test 60.45-60.00 again, else JPYINR may test 61.45-61.80 on the upside very soon.
EUR up slightly after Fed holds rates steady for third straight meeting
Euro/Rupee traded up for the third straight session Wednesday as a slew of upbeat economic data from the euro-zone lowered bets of further monetary policy easing by the European Central Bank in near-term.
Sell strategy given on rise 75.55-75.60 was initiated but due to range bound trade EURINR settled failed to test 75.25 on the downside. On the EOD chart pair still trading below the strong resistance 75.80 which is indicating for bearishness in near future.
Further, a break above this resistance only could expect to test 76.10-76.35
Sterling retraced from the weekly high as U.K. first quarter growth slows
The pound pared back early gains against the dollar on Wednesday after data showing that U.K. economic growth slowed in the first three months of the year
he U.K. economy grew 0.4% in the three months to March the Office of National Statistics said, in line with economists’ expectations, but slowing from 0.6% in the prior quarter.
The service sector was the only part of the economy to grow in the first quarter, the data showed, with manufacturing, construction and agriculture all contracting.
Service sector output grew by 0.6%, industrial production fell by 0.4% and construction contracted by 0.9%.
The economy grew at an annual rate of 2.1% in the first quarter, slightly higher than economists’ expectations for growth of 2.0% and matching the previous quarter.
GBPINR continued its pullback on Wednesday, however due volatile trade after hitting a high of 97.7150 pair settled at 97.4575 levels.
Intraday price action resulted in formation of high wave candle stick formation which is indicating for bullish trend reversal in GBPINR.
Near term resistance is seen at 97.80, and GBPINR would need to trade above these levels in order to test 98.00-98.50, else failure of the break will create probability for the correction from the every high of 97.35-97.50.
Major Economic Data & Events Schedule today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
Tentative
|
JPY
|
Monetary Policy Statement
|
-
|
-
|
-
|
10:30am
|
JPY
|
BOJ Outlook Report
|
-
|
-
|
-
|
JPY
|
BOJ Core CPI y/y
|
1.20%
|
1.10%
|
Positive
| |
JPY
|
Housing Starts y/y
|
-0.50%
|
7.80%
|
Negative
| |
11:30am
|
GBP
|
Nationwide HPI m/m
|
0.40%
|
0.80%
|
Negative
|
All Day
|
EUR
|
German Prelim CPI m/m
|
-0.20%
|
0.80%
|
Negative
|
Tentative
|
JPY
|
BOJ Press Conference
|
-
|
-
|
-
|
12:30pm
|
EUR
|
Spanish Flash CPI y/y
|
-0.70%
|
-0.80%
|
Negative
|
EUR
|
Spanish Unemployment Rate
|
20.90%
|
20.90%
|
Neutral
| |
1:25pm
|
EUR
|
German Unemployment Change
|
1K
|
0K
|
Negative
|
Tentative
|
EUR
|
Italian 10-y Bond Auction
|
1.24|1.4
| ||
6:00pm
|
USD
|
Advance GDP q/q
|
0.70%
|
1.40%
|
Negative
|
USD
|
Unemployment Claims
|
258K
|
247K
|
Negative
| |
USD
|
Advance GDP Price Index q/q
|
0.50%
|
0.90%
|
Negative
|
More will update soon!!
