* USDINR trading range for the day is 63.69-64.07.
* Rupee traded with little change as investors await India’s fiscal budget for the fiscal year 2019 and Federal Reserve’s monetary policy meeting.
* The Finance Ministry projected FY18 GDP growth at 6.75%, while projecting FY19 growth at 7-7.5%.
* India’s economy should grow between 7 percent and 7.5 percent in 2018/19 (April-March) with exports and private investment set to rebound.
* Prices are making lower high lower low pattern and failed to break above 64
* ADX=13 indicating prices to remain range bond and RSI, MACD are trading flat indicating no momentum
* Trend to remain bearish till 64.44 is not broken on the upside
* If prices sustain below 64 we might see prices testing 63.40 levels
* EURINR trading range for the day is 78.86-79.76.
* Euro recovered as U.S. dollar erased as investors were cautious ahead of the U.S. State of the Union speech and the Federal Reserve’s monthly policy decision.
* The euro zone’s economy could prove to be a shining star again this year, but persistently tepid inflation will probably keep ECB from following its peers.
* Spain’s retail sales growth moderated at the end of the year, after accelerating in the previous month, figures from the statistical office INE showed.
* Prices break and close above resistance placed at 79
* ADX=37 +DMI>-DMI indicating strong bull trend and RSI,MACD making higher high higher low indicating wrong bull momentum
* Trend to remain bullish till 77.70 is not broken on the downside
* If prices sustain above 78.50 we might see prices testing 79.50 levels
* GBPINR trading range for the day is 88.89-91.39.
* GBP prices gained amid increased optimism around Brexit and the economic backdrop.
* BoE’s Carney: Financial system unlikely to amplify asset-price moves
* BoE’s Carney: 80% of G-7 recovery led by investment, trade
* Prices failed to sustain above the previous day gap and closing the gap
* ADX=36 +DMI>-DMI indicating strong bull trend and RSI,MACD breaking above the consolidation indicating wrong bullish momentum
* Trend to remain bullish till 89.27 is not broken on downside
* If prices sustain above 89.27 we might we prices testing 90.90
* JPYINR trading range for the day is 58.51-59.11.
*JPY rose after the Bank of Japan reduced its buying of long-dated government bonds in market operations earlier this month.
* Japan’s Taro Aso: If necessary authorities will search exchanges
* Japan’s Finance Minister Taro Aso: Coincheck event is very regrettable, better management needed for virtual currency business.
* Prices breakout above the lower high lower low pattern and closed near the swing high placed at 58.64
* ADX=26 +DMI>-DMI indicating strong bull trend and RSI,MACD breaking above the consolidation indicating wrong bullish momentum
* Trend to remain bullish till 58 is not broken on the downside
* If prices sustain above 58.30 we might see prices testing 59.10 levels
Yesterday rupee depreciated by 0.14 percent despite dollar index weakening by 0.17 percent. Rupee weakened despite IMF’s projections of growth in Indian GDP at 7.4% for 2018 and 7.8% for 2019. Also, the weakness can also be attributed to fear that government might widen its fiscal deficit target in the budget. Also, Indian equity market remained negative during the day with a weakening of around 0.73 percent in Nifty Index.
US President Donald Trump had welcomed a stronger dollar in his comments at the Davos summit in Switzerland. The flash manufacturing PMI from US came in line with market expectations of 55.5 in Dec’17. Also, the consumer confidence for Dec’17 beats market expectations by 2.2 mark to come in at 125.4 in Dec’17. However, advance quarterly GDP for Q4 2017 comes in at 2.6% which was lower than market expectations of 3%.
USDINR is expected to move sideways in the coming session
EURUSD appreciated by 0.15 percent while EURINR depreciated by 0.37 percent during the same time frame.
The preliminary quarterly GDP estimates for euro zone come in line with market expectations at 0.6% for Q4 2017. Also, Euro Area flash services PMI came in better than market estimates at 57.6 in Dec’17 as compared to 56.5. Also, grand coalition talks in Germany get adjourned over refugee issue.
EURINR is expected to depreciate in the coming session
GBP appreciated against the US dollar by 0.52 percent yesterday while GBPINR depreciated by 0.66 percent during the same time period.
Public sector borrowing for UK came in at 1.02 billion pound which less than market estimates of around 4.2 billion pounds for Dec’17. However, average earnings index for Dec’17 came in line with market expectations at 2.5% in Dec’17. Also, unemployment rate in UK for Dec’17 came in line with market expectations at 4.3%. Quarterly GDP comes in at 0.5 % in Q4 beating market estimates by 0.1%.
GBPINR is expected to depreciate in the coming session
JPYINR witnessed another positive session. Price has been steadily rising from the low of 55.88 in early this month.
In addition, price closed above previous session’s high.
Momentum indicator RSI (14) is in bullish crossover and rising.
On the above technical studies & parameter, we are expecting upward move towards 59.00.AFTER POST CONTENT
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