Dollar/Rupee open slightly up, Dollar Index up after US CPI data
Dollar/rupee opens up around 67.1025 while the
dollar index traded marginally up Wednesday after the data showed US consumer
prices recorded their biggest increase in more than three years in April.
Technically, Sell strategy given around 66.90-67.00
was initiated but yet to test target 66.75. Short term outlook is expect to
remains bearish following the downside consolidation below the resistance of
67.30 and its expected that any rise towards 67.00-67.15 could attract selling
activities for the target of 66.75-66.60 unless pair gives a closing above
67.301.
Dollar Index
Dollar index, which tracks the strength of the
greenback against a basket of six currencies, traded marginally up at 94.69
during early Asian trade compared to 94.57at close New York time.
The greenback rose against its major currencies
after the Labour Department reported Tuesday that the consumer price index
increased a seasonally adjusted 0.4% in April from a month ago, the largest
one-month increase since February 2013.
The data suggest that inflation may be firming,
encouraging the Fed policy makers to hike interest rates in the near term.
Technically, a break above 94.85 will expect to
test 95.20 and above. Immediate support is seen at 94.30 and possible
correction towards 94.00-93.80 is expected to come below these levels only.
Further, FOMC Meeting Minutes due later today, and
range bound move could expect ahead this event.
EUR/Rupee
Euro up for the second-straight day Tuesday as
dollar weakened on higher risk appetite after surge in oil prices while
investors await the result of US April FOMC meeting minutes.
EURINR witnessed mild recovery from the day low
75.6425 and settled at 75.8625 levels. On the above EOD chart pair is trading
on verge of rising channel and a break below the lower trend line could point
for the downside target of 74.80-74.50, else failure of the break only could
witnessed pullback towards 76.00-76.35.
GBP/Rupee
Pound posted its biggest intraday gain in four
weeks Tuesday after polls showed bets for UK's exit from the European Union
have decreased whereas the campaign in support for UK's continued membership of
EU has strengthened.
Adding to the strength in pound, dollar
weakened on lower safe-haven bets after crude oil prices surged after supply
disruptions in Nigeria led Goldman Sachs to raise its price forecast.
GBP-INR has made impressive gains of almost 0.80%
yesterday and settled at 96.99 levels. The pair has retraced more than 1.40%
from 61.8% Fibonacci Retracement levels from its previous swings.
Hence, near term outlook may remain bearish
and any rise towards 96.60-96.80 could attract huge selling pressure unless it
gives a closing above 97.15.
A break above 97.15 only could result
positive move towards 97.50-97.75.
Japanese Yen
Japanese yen traded down against Rupee and Dollar
on Tuesday as risk appetite increased after crude oil prices surged in the
Asian trades. The G7 meeting could discuss issues ranging from currency and
fiscal policies of the group of advanced economies.
After hitting a low of 61.00, JPYINR turned neutral
and settled at 61.2125, down by 0.49%. Intraday price action resulted in
formation of Hammer candle stick which is indicating for bearish trend
reversal.
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
|
|
5:20am
|
JPY
|
Prelim
GDP q/q
|
0.10%
|
-0.30%
|
Positive
|
|
JPY
|
Prelim
GDP Price Index y/y
|
1.00%
|
1.50%
|
Negative
|
|
|
6:00am
|
AUD
|
MI
Leading Index m/m
|
-
|
-0.10%
|
-
|
|
6:30am
|
AUD
|
RBA
Assist Gov Debelle Speaks
|
-
|
-
|
-
|
|
7:00am
|
AUD
|
Wage
Price Index q/q
|
0.50%
|
0.50%
|
Neutral
|
|
2:00pm
|
GBP
|
Average
Earnings Index 3m/y
|
1.70%
|
1.80%
|
Negative
|
|
GBP
|
Claimant
Count Change
|
4.0K
|
6.7K
|
Positive
|
|
|
GBP
|
Unemployment
Rate
|
5.10%
|
5.10%
|
Neutral
|
|
|
2:30pm
|
EUR
|
Final
CPI y/y
|
-0.20%
|
-0.20%
|
Neutral
|
|
EUR
|
Final
Core CPI y/y
|
0.70%
|
0.80%
|
Negative
|
|
|
Tentative
|
EUR
|
German
10-y Bond Auction
|
-
|
0.15|1.4
|
-
|
|
6:00pm
|
CAD
|
Foreign
Securities Purchases
|
10.35B
|
15.94B
|
Negative
|
|
7:00pm
|
GBP
|
CB
Leading Index m/m
|
-
|
0.20%
|
-
|
|
8:00pm
|
USD
|
Crude
Oil Inventories
|
-
|
-3.4M
|
-
|
