Dollar/Rupee
Dollar/rupee snapped two-day gains Tuesday on likely dollar
selling by foreign banks, however sharp downside was limited on likely buying
by nationalized banks on behalf of oil and defence importers. Adding to this, data released by IMD
showed that India rained 3% above normal during Jul 1-18 period. This may help cool food prices and
build space for the RBI to cut rates in the coming months.
The dollar hit 4-month highs against a basket of major rivals on
Tuesday after better than expected housing data was released stateside and
while the International Monetary Fund (IMF) weighed in on the economic damage
to the U.K. and euro zone in the wake of U.K.’s decision to leave the European
Union (EU), known as a Brexit.
Technical, USDINR traded range bound in between 67.15-67.22
levels and settled at 67.2150, down by 0.10%. On the EOD chart, pair failed to break
38.2% of Fibonacci Retracement which creating probability for pull down towards
67.00-66.95 again.
However, downside move could be limited as there is massive
support at 66.90 and pair would need to trade below 66.90 in order to test
66.65 and below.
On the upside, sustain trade above 67.35 only will expect
to test 67.55-67.70.
EUR-INR
Euro settled down by 0.10% on Tuesday. ECB meets Thursday to discuss monetary policy in the 19-nation Eurozone and is expected to maintain status quo. However, investors will watch the tone of the central bank to take further direction.
EURINR retraced from the day high 74.5775 and settled at 74.28. On the hourly chart, pair trading on verge of triangle support. A break below 74.20 is expected to show decent fall towards 73.80-73.65 in days to come. On the other hand, failure of the break down could result pullback towards 74.75-74.90 again.
GBP-INR
Pound traded down Tuesday as dollar strengthened on risk
aversion ahead of the European Central Bank policy meeting later this week.
Pound also weakened on risk aversion tracking falling oil prices and renewed
concerns about the stability of institutions in Turkey
GBPINR extended its bearish trend and settled with loss of 0.63%
at 88.49 levels. Formation of long black candle stick is indicating for
bearishness in GBPINR.
On the upside, immediate resistance is seen at 89.25 and pair
would need to trade above 89.25 in order to test 89.55-89.80.
JPY-INR
Yen continued to its downward trend on speculation of further
easing by the Bank of Japan in its policy on July 29 coupled with new fiscal
stimulus from the government as growth and inflation in the world's third
largest economy.
JPYINR extended its recent bearish trend and settled with loss
of 0.65% at 63.30 levels. In near term pair expects to remain bearish and may
test 63.00-62.80 very soon.
Further, immediate resistance is seen at 63.75 sustain trade
above only will expect to test 63.95-64.10.
Major Economic Data & Events Schedule today
|
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
|
11:30am
|
EUR
|
German PPI m/m
|
0.20%
|
0.40%
|
Negative
|
|
1:30pm
|
EUR
|
Current Account
|
24.9B
|
36.2B
|
Negative
|
|
2:00pm
|
GBP
|
Average Earnings Index 3m/y
|
2.30%
|
2.00%
|
Positive
|
|
GBP
|
Claimant Count Change
|
4.1K
|
-0.4K
|
Negative
|
|
|
GBP
|
Unemployment Rate
|
5.00%
|
5.00%
|
Neutral
|
|
|
6:30pm
|
CNY
|
CB Leading Index m/m
|
-
|
0.20%
|
-
|
|
7:30pm
|
EUR
|
Consumer Confidence
|
-8.00
|
-7.00
|
Negative
|
More will Update soon..
