Dollar/Rupee retraced more than 0.20%
Dollar/rupee
retraced from its previous close of 67.7825 and trading at 67.6275 levels and
the dollar index traded near two-month high Wednesday on expectations for an
interest rate hike in coming months from the Federal Reserve.
Dollar
index, which tracks the strength of the greenback against a basket of six
currencies, breached its highest level since Mar 29, 95.97 during early Asian
trade Wednesday compared to 95.24 at close New York time on Tuesday.
US
new home sales data reported a better than expected data supporting the view
that the world's largest economy may be strong enough for the Fed to raise
interest rates as early as June.
Technical,
USDINR extended its recent bullish trend on Tuesday also and after hitting first
predicted levels settled at 67.8325. However pair was unable to settled above
the 38.2% Fibonacci Retracement, while intraday price action resulted in
formation of spinning top candle stick on EOD chart which indicating for trend
reversal in the pair.
Further, USDINR would need to trade above 67.88
in order to test 68.08 and above, else short term correction is expect to take
place for 67.35-67.20 very soon.
EUR/Rupee continued to trade downside
Euro
traded near eight-week low Tuesday on fear economic growth in Germany, the
common currency region's strongest economy, may slow in second-quarter and
investors remained wary over a Federal Reserve rate hike as early as June.
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 for continuation of recent bearish trend, and any rise
towards 76.00-76.10 likely to attract huge selling pressure.
Target
would be 75.50-75.20. Stop loss above 76.30.
GBPINR surged more than 1.10% on lower risk of a vote to
exit the European
GBP
witnessed a speculative gain of 1.19% on Tuesday, snapped its two-day losses
after another opinion poll pointed out to a lower risk of a vote to exit the
European Union in the UK's June 23 referendum.
The
latest ORB poll published in Tuesday's edition of the Telegraph newspaper
stated that 55% intend to vote to "Remain" in the EU while 42%
intended to vote to "leave" EU. Investors have turned focus to the
testimony by Bank of England Governor Mark Carney and other BOE policymakers
before UK lawmakers.
After
breaching the resistance of 98.60 GBPINR saw a abrupt bullish rally and tested
99.0325 before closing at 99.0325 levels. Sell strategy given below 97.60 was
not initiated (day low was 98.0125). A formation of long bullish candle stick
on EOD chart is indicating bullishness in GBPINR.
Hence,
any dip towards 98.25-98.10 likely to attract huge buying activities with stop
loss below 97.95.
Japanese Yen retraced from the 62.0750
Yen
traded with little changed Tuesday as investors await fresh triggers from the
release of US GDP figures and comments from the Federal Reserve Chair Janet
Yellen both due on Friday.
JPYINR
continued its recent bullish trend and after hitting a high of 62.0725 settled
at 61.85 levels. Intraday price action resulted in formation of Spinning top
candle stick which is indicating for bullish trend reversal. Further, JPYINR
would need to trade below 61.60 in order to test 61.00-60.80 and below.
Major Economic Data & Events Schedule
today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
11:30am
|
EUR
|
GfK German Consumer Climate
|
9.7
|
9.7
|
Neutral
|
1:30pm
|
EUR
|
German Ifo Business Climate
|
106.9
|
106.6
|
Positive
|
Tentative
|
EUR
|
German 30-y Bond Auction
|
-
|
1.03|1.6
|
-
|
All Day
|
EUR
|
ECOFIN Meetings
|
-
|
-
|
-
|
6:00pm
|
USD
|
Goods Trade Balance
|
-60.1B
|
-56.9B
|
Negative
|
6:30pm
|
EUR
|
Belgian NBB Business Climate
|
-1.8
|
-2.4
|
Negative
|
USD
|
HPI m/m
|
0.40%
|
0.40%
|
Neutral
|
|
7:15pm
|
USD
|
Flash Services PMI
|
53.1
|
52.8
|
Positive
|
8:00pm
|
USD
|
Crude Oil Inventories
|
-
|
1.3M
|
-
|
