India is set to release its gross domestic product later today
USD-INR
The Indian currency snapped two days fall on likely overseas funds inflow into local stocks, while bond yields fell for the second straight day on waning fears of a Federal Reserve rate hike amid hopes that RBI may infuse permanent liquidity via OMO purchase at least by next week.
USDINR opened flat on lack of fresh triggers as investors await the release of India's first quarter growth data due today and US Non-Farm payroll scheduled to release this week.
However, expectations of purchase of government securities via open market operations by the Reserve Bank of India in the coming days are supporting Rupee against the dollar.
India is set to release its gross domestic product later today, which will give hint on the pickup in its economic activities.
Having got up to 7.9 percent in the March quarter, gross domestic product growth in the June quarter is forecast at around 7.6 percent largely due to weak domestic and external demand, according to economists polled by Reuters.
Government Finances Apr-Jul Fiscal deficit (pct of Budget estimate) previous 61.1%
Meanwhile, investors will look forward to the release of US Non-Farm Payroll data due this week as it will be the final crucial data point before the Federal Open Market Committee meets on Sep 20-21.
Technical, USDINR was unable to break its immediate resistance 67.65, and retraced from the day high 67.45. In near term any rise towards 67.45-67.50 expects to attract selling activities for the target 67.10-66.95.
On the upside, massive resistance is seen at 67.65 sustain trade above only could open the door for 67.85-68.10.
EUR-INR
Euro traded down for third straight session Tuesday tracking dollar strength against other major currencies after US Federal Reserve Chairperson Janet Yellen's speech at Jackson Hole increased fears of a near-term Fed rate hike even as investors await the release of US jobs report for August.
EURINR extended its fall for second consecutive day and after breaching the support 75.30 settled at 75.23 levels.
Today, EURINR expect to remain bearish as it broke crucial support 75.30 and may test 75.00-74.80 very soon.
On the upside, immediate resistance is seen at 75.80-76.10.
GBP-INR
Pound traded up for fourth straight day Tuesday as dollar surged to over two-week high on fears Federal Reserve may hike its rates in near future.
After hitting a low of 88.0675, GBPINR saw a pullback towards 88.2825 and settled at 88.2525.
Near term trend expect to remain bearish and any rise towards 88.50-88.60 could attract selling activities for the target 88.10-87.75.
On the upside, strong resistance is seen at 88.75 the 89.25.
JPY-INR
Yen extended its fall for second straight session Tuesday as dollar continued its surge against major currencies to trade at over two-week high on fears Federal Reserve may hike its interest rates soon.
JPYINR settled at 65.8325 compare to previous close of 66.0150. A break down below its crucial support 65.75 is indicating for bearish move in JPYINR and pair may test 65.00-64.75 very soon.
Immediate resistance is seen at 65.85 then 66.10.
§ Major Economic Data & Events Schedule today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
4:35am
|
GBP
|
GfK Consumer Confidence
|
-8.00
|
-12.00
|
Neutral
|
5:20am
|
JPY
|
Prelim Industrial Production m/m
|
0.70%
|
2.30%
|
Negative
|
10:30am
|
JPY
|
Housing Starts y/y
|
7.60%
|
-2.50%
|
Positive
|
11:30am
|
EUR
|
German Retail Sales m/m
|
0.50%
|
-0.10%
|
Positive
|
GBP
|
Nationwide HPI m/m
|
-0.10%
|
0.50%
|
Negative
| |
12:15pm
|
EUR
|
French Consumer Spending m/m
|
0.30%
|
-0.80%
|
Positive
|
EUR
|
French Prelim CPI m/m
|
0.40%
|
-0.40%
|
Positive
| |
1:25pm
|
EUR
|
German Unemployment Change
|
-2K
|
-7K
|
Positive
|
1:30pm
|
EUR
|
Italian Monthly Unemployment Rate
|
11.50%
|
11.60%
|
Positive
|
2:30pm
|
EUR
|
CPI Flash Estimate y/y
|
0.30%
|
0.20%
|
Positive
|
EUR
|
Core CPI Flash Estimate y/y
|
0.90%
|
0.90%
|
Neutral
| |
EUR
|
Italian Prelim CPI m/m
|
0.10%
|
0.20%
|
Negative
| |
EUR
|
Unemployment Rate
|
10.00%
|
10.10%
|
Positive
| |
5:45pm
|
USD
|
ADP Non-Farm Employment Change
|
173K
|
179K
|
Negative
|
7:15pm
|
USD
|
Chicago PMI
|
54.10
|
55.80
|
Negative
|
7:30pm
|
USD
|
Pending Home Sales m/m
|
0.70%
|
0.20%
|
Positive
|
India Economic Data, Events
Government Finances (Apr-Jul)-Fiscal deficit (pct of Budget estimate)
GDP (y/y chg) Apr-Jun
CPI inflation industrial Workers Jul
Aug 31 IIP core (y/y chg) Jul
