Dollar/Rupee
Dollar/rupee ended up for the eight straight day Monday as
dollar index rebounded after St. Louis Federal Reserve President and FOMC
voting member, James Bullard's hawkish comments amid dollar demand from oil
importers.
Technical, USDINR witnessed a sharp recovery from the day low
67.3175, and settled near to its previous day close of 67.56 levels. In last week, USDINR was able to break
its short term consolidation range of 66.55-67.30, that started since 29 April
2016.
A sustain
close above the 38.2% Fibonacci is indicating for bullishness in USDINR, but
pair would need to trade above 67.60 in order to test 67.85-68.08 levels, else
any short term correction towards 67.20-67.30 is expect to give opportunity to
build up long position for the target 67.55-67.80.
EUR/INR
Euro traded down Monday after data released showed that the
flash Eurozone PMI fell to a 16-month low in May raising doubts over recovery
in the Eurozone economy.
Since 17 May 2016, EURINR has been consolidating in between
75.50-76.00 and struggling break above 23.8% Fibonacci Retracement of its
previous fall.
This formation is indicating that short term trend has
been shifted in consolidation phase and EURINR expected to trade in-between
above levels unless it give either side break out.
On the other hand, a break above 76.00 is expect to give positive move towards 76.25-76.45 again.
On the other hand, a break above 76.00 is expect to give positive move towards 76.25-76.45 again.
GBP/INR
Pound fluctuated Monday as investors await the release of
preliminary estimates for UK's first-quarter GDP amid worries of UK's possible
exit from the European Union. Adding to this, pound is also under pressure on
concerns over UK's possible exit from the European Union in a referendum set
for Jun 23rd. Prime Minister David Cameron and finance minister George Osborne
made a fresh series of warnings of how households would be hit by a vote to
leave the EU.
A bearish harami candle stick formation was resulted more than
0.65% drastic fall in GBPINR; however sell strategy given on 98.35 was not
initiated. A formation of long bearish candle stick on EOD chart is indicating
bearishness in GBPINR. Further, pair would need to trade above 98.60 in order
to test 98.80-99.00.
Hence, any rise towards 98.20-98.30 is expect to attract intra day selling activities with stop loss above 98.45.
Hence, any rise towards 98.20-98.30 is expect to attract intra day selling activities with stop loss above 98.45.
JPY/INR
Yen strengthened against the greenback on Monday as investors
moved away from Japanese stocks and sought safety of yen after data released
Monday showed that the exports from Japan dipped 10.1% in April, more than
forecasted 9.9%. The Japanese exports had dropped 6.8% in March.
Buy strategy given around 61.20-61.30 in JPYINR was successful
with pair jump towards 61.8225 levels. Sustain
trade above the crucial support of 60.90 is creating probability for further
upside move.
Further, JPYINR would need to trade below 60.90 in order
to test 60.70-60.50 and below.
Major Economic Data & Events Schedule today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
11:30am
|
EUR
|
German Final GDP q/q
|
0.70%
|
0.70%
|
Neutral
|
2:00pm
|
GBP
|
Public Sector Net Borrowing
|
6.3B
|
4.2B
|
Positive
|
2:30pm
|
EUR
|
German ZEW Economic Sentiment
|
12.1
|
11.2
|
Positive
|
EUR
|
ZEW Economic Sentiment
|
23.4
|
21.5
|
Positive
| |
GBP
|
Inflation Report Hearings
|
-
|
-
|
-
| |
3:30pm
|
GBP
|
CBI Realized Sales
|
6
|
-13
|
Positive
|
All Day
|
EUR
|
Eurogroup Meetings
|
-
|
-
|
-
|
5:30pm
|
EUR
|
ECB Financial Stability Review
|
-
|
-
|
-
|
6:30pm
|
CNY
|
CB Leading Index m/m
|
-
|
0.60%
|
-
|
7:30pm
|
USD
|
New Home Sales
|
521K
|
511K
|
Positive
|
USD
|
Richmond Manufacturing Index
|
9
|
14
|
Negative
|
