Dollar traded down as BOJ downplayed stimulus need
Dollar/rupee and the dollar index traded little changed Friday
as investors reset their near-term expectations on stimulus from various global
Central Banks after ECB failed to add stimulus and Bank of Japan's governor
downplayed the need for "helicopter money" monetary policies.
The greenback fell on hopes that the Bank of Japan may hold off
unleashing "helicopter money" at its two-day monetary policy meet on
Jul 28-29 amid mixed economic data from the world's largest economy.
In an interview with BBC radio, Bank of Japan Governor Haruhiko
Kuroda said Thursday there was "no need and no possibility" for an
aggressive form of stimulus known as helicopter money.
Speculation across the globe has been growing that Japan could
introduce helicopter money after Prime Minister Shinzo Abe's ruling coalition
expanded its control of parliament earlier this month.
Technical, USDINR remained range bound for third consecutive day
and settled at 67.2150, almost flat. On
the EOD chart, pair failed to break its immediate resistance of 38.2% Fibonacci
Retracement which creating probability for pull down towards 67.00-66.95
again. However,
a break above 67.35 on closing basis could result in positive move towards
67.58-67.75
EUR-INR July Future
EUR bounced off near four-month lows, spiking after Mario Draghi
sent strong indications that the European Central Bank could be ready to use a
wide array of easing tools in the coming months to bolster the economy
following Thursday's decision to hold interest rates steady.
EURINR almost flat at 74.09 levels Pair yet trading below the
triangle breakdown which was observed on the hourly chart.
Hence, any rise towards 74.60-74.65 is expected to attract
huge selling activities in days to come. On the upside, strong resistance is
seen at 74.85 and sustain trade above only will expect to test 75.25-75.55
GBP-INR July Future
Pound fell Thursday after the release of a lower than expected
UK economic data. UK retail sales dipped amid fall in the government borrowing,
ahead of the Brexit from European Union bloc.
GBPINR extended its momentum upwards move for second consecutive
day and after hitting 89.2425 intraday high settled at 89.04.
On the EOD chart pair trading below the 23.8% of Fibonacci
Retracement level of its previous which creating probability for sell on every
rise towards 88.85-88.95.
On the upside, immediate resistance is seen at 89.30 and
pair would need to trade above 89.30 in order to test 89.55-89.80.
Japanese Yen
Yen rebounded on Thursday as investors booked profit after the
pair touched over six-week high ahead of the European Central Bank policy
meeting.
Sell strategy given below 63.05 was successful with pair drop
towards 62.7075 levels. Second predicted level was at 62.50. However pair
ended with pullback towards 63.4625.
On the EOD chart, a trend reversal candle stick pattern is
indicating for momentum upside move in JPYINR.
On the downside, crucial support is seen at 62.70 and
sustain trade below only will expect to test 62.20-61.80.
Major Economic Data & Events Schedule today
|
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
|
7:30am
|
JPY
|
Flash Manufacturing PMI
|
48.3
|
48.1
|
Positive
|
|
12:30pm
|
EUR
|
French Flash Manufacturing PMI
|
48.1
|
48.3
|
Negative
|
|
EUR
|
French Flash Services PMI
|
49.6
|
49.9
|
Negative
|
|
|
1:00pm
|
EUR
|
German Flash Manufacturing PMI
|
53.6
|
54.5
|
Negative
|
|
EUR
|
German Flash Services PMI
|
53.3
|
53.7
|
Negative
|
|
|
1:30pm
|
EUR
|
Flash Manufacturing PMI
|
52.1
|
52.8
|
Negative
|
|
EUR
|
Flash Services PMI
|
52.3
|
52.8
|
Negative
|
|
|
2:00pm
|
GBP
|
Manufacturing PMI
|
47.8
|
52.1
|
Negative
|
|
GBP
|
Services PMI
|
48.9
|
52.3
|
Negative
|
|
|
2:30pm
|
EUR
|
Italian Retail Sales m/m
|
0.20%
|
0.10%
|
Positive
|
|
7:15pm
|
USD
|
Flash Manufacturing PMI
|
51.9
|
51.3
|
Positive
|
