Dollar/Rupee
Dollar/rupee ends little change Tuesday on likely overseas funds outflows from local stocks amid weak dollar.
USD-INR remained in short term consolidation range of 66.55-66.95. Since 20 April, USDINR struggling to break support 66.50, which is create Probability for the pullback towards 66.95-67.15 in days to come.
Further, pair would need to break below 66.50 on the closing basis in order to test 66.30-66.10.
On the other hand, dollar index is expected to show pullback towards 93.50 and above following the hammer candle stick on the daily chart, which may add some strength in USDINR too.
Thereby, any rise towards 67.00-67.15 is appearing to set correction in days to come unless it gives a closing above 67.30. A break above this resistance could result 67.55-67.80 upside move.
EUR/Rupee
Euro traded at over 8-month high Tuesday as dollar index weakened further to a fresh 15-month low after weak economic data from the world's largest economy eased fears of a near-term rate hike by the Federal Reserve.
EURINR extended its gain and tested 77.35 before closing at 77.25 levels. A long bullish candle stick formation on EOD chart is yet indicating for bullishness in the pair, but EURINR would need to trade above 77.35 which is coincide 61.8% Fibonacci Retracement of its medium term fall, a failure of the break out could lead correction towards 76.50-76.25a gain.
Hence, any rise towards 76.90-77.00 may give sell opportunity for the target 76.50-76.25.
GBP/Rupee
Pound retreated from a four-month high Tuesday after weak economic data from the UK. Pound hit its highest level since 4th Jan 2015 as dollar fell after weaker than expected US economic data easing expectations of a Fed rate hike in near term
GBPINR retraced from the day high 98.3150 and settled at 97.7850 levels. Intraday price action resulted in formation of hammer candle stick formation which is indicating for bullish trend reversal in GBPINR. Near term resistance is seen at 98.35, 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.
Traders may sell around 97.50-97.60 Target 97.00-96.75. Stop loss above 97.75.
Japanese Yen/Rupee
Yen traded at fresh 18-month high on Tuesday as dollar fell to over 15-month low after weak US data further reduced fears of a near term rate hike by the Federal Reserve. Japanese markets are closed till Thursday for various public holidays
JPYINR continued its recent bullish trend and after breaching 62.70 tested 63.09 levels. Near term trend is expect to remain bullish following to the long bullish candle stick formation on EOD chart.
Further, JPYINR need to trade above 63.10 in order to test 63.40-63.80 and above, else failure of the break could bring correction towards 62.00-61.50-61.00 again.
Hence, one can sell on every rise towards 62.70-62.90 unless it gives a closing above 63.10.
Yuan - PBOC injects 100bn yuan via 7-day reverse repos
China's central bank on Wednesday fixed the yuan currency nearly 0.60 per cent weaker against the US dollar, according to the national foreign exchange market, the biggest downward move since devaluing the unit in August last year.
The People's Bank of China set the value of the yuan - also known at the renminbi (RMB) - at 6.4943 to US$1.0, weakening 0.59 per cent from the fix of 6.4565 the previous day, according to data from the Foreign Exchange Trade System.
Major Economic Data & Events Schedule today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
All Day
|
JPY
|
Bank Holiday
|
-
|
-
|
-
|
12:15pm
|
EUR
|
French Trade Balance
|
-4.2B
|
-5.2B
|
Positive
|
12:30pm
|
EUR
|
Spanish Unemployment Change
|
-86.6K
|
-58.2K
|
Negative
|
12:45pm
|
EUR
|
Spanish Services PMI
|
55.1
|
55.3
|
Negative
|
1:15pm
|
EUR
|
Italian Services PMI
|
51.3
|
51.2
|
Positive
|
1:20pm
|
EUR
|
French Final Services PMI
|
50.8
|
50.8
|
Neutral
|
1:25pm
|
EUR
|
German Final Services PMI
|
50.5
|
54.6
|
Negative
|
1:30pm
|
EUR
|
Final Services PMI
|
53.3
|
53.2
|
Positive
|
2:00pm
|
GBP
|
Construction PMI
|
54.1
|
54.2
|
Negative
|
2:30pm
|
EUR
|
Retail Sales m/m
|
0.10%
|
0.20%
|
Negative
|
Tentative
|
EUR
|
French 10-y Bond Auction
|
0.43|1.7
| ||
3:45pm
|
EUR
|
German Buba President Weidmann Speaks
| |||
5:45pm
|
USD
|
ADP Non-Farm Employment Change
|
205K
|
200K
|
Positive
|
6:00pm
|
USD
|
Prelim Nonfarm Productivity q/q
|
-1.30%
|
-2.20%
|
Negative
|
USD
|
Prelim Unit Labor Costs q/q
|
2.90%
|
3.30%
|
Negative
| |
USD
|
Trade Balance
|
-45.6B
|
-47.1B
|
Negative
| |
7:15pm
|
USD
|
Final Services PMI
|
52.1
|
52.1
|
Neutral
|
7:30pm
|
USD
|
ISM Non-Manufacturing PMI
|
54.9
|
54.5
|
Positive
|
USD
|
Factory Orders m/m
|
0.70%
|
-1.70%
|
Positive
|
More will update soon!!
