Yesterday rupee depreciated by 0.14 percent while dollar index strengthened by 0.03 percent Sharp selloff in global and Indian equity markets, coupled with strong rise in US treasury yields had kept rupee under pressure during most parts of the day. Also, Investors would be keenly observing the RBI meeting today. Indian equity market remained negative during the day with a decline of around 1.6 percent in Nifty Index.
In the recent US Federal meeting the committee decided to keep interest rates unchanged at 1.25-1.5%. The Non-manufacturing PMI comes in at 59.9 against market expectations 56.5 in Jan’18. Also, final services come in line with market expectations at 53.3 in Jan’18. Non-farm payroll came in at 200,000 against market expectations of 180,000 for Jan’18. US trade deficit widens to $53.1 billion in Dec’17.
On Tuesday, USDINR has pulled back from day high and settled near the previous day close. On the daily chart, pair has given breakout of falling channel formation and moved above 50 days EMA. Momentum indicator RSI (14) reading is at 57.43 levels with positive crossover. MACD has shown positive crossover on daily chart. On the above technical studies & parameter, we are expecting upwards move in the price towards 65.
USDINR is expected to appreciate in the coming session
EURUSD appreciated by 0.07 percent while EURINR depreciated by 0.03 percent during the same time frame.
Euro regained strength despite Mario Draghi calling for monitoring of the currency volatility. He also mentioned that inflation had remained subdued but economic growth has been on track. Also, the preliminary quarterly GDP estimates for euro zone came in line with market expectations at 0.6% for Q4 2017. Euro services PMI comes in at 58 for Jan’18 against market expectations of 57.6. German factory orders rebounds to 3.8% in Dec’17 as compared to market expectation of 0.6%.
EURINR has slipped lower on Tuesday and settled below the previous day close. On the weekly chart, EURINR has been rising in channel formation; where it has shown continue bullish rally in last couple of the week. Moreover, RSI (14) is in bullish mood with positive crossover. Based on the above technical studies or indicator, we expect bullish movement in the prices towards 80.50 levels.
EURINR is expected to appreciate in the coming session
GBP depreciated against the US dollar by 0.07 percent while GBPINR depreciated by 0.07 percent during the same time period.
Unemployment rate in UK for Dec’17 came in line with market expectations at 4.3%. However, services PMI from UK came lower than market expectations 53 against 54.1 in Jan’18. Also, BOE governor Carney was positive about the UK economy and said they are working towards controlling inflation in the region. The movement in GBP will be influenced the BOE meeting on 8th Feb 2018.
GBPINR opened on negative note and extended the losses for the day, settled below $90. GBPINR has been moving in rising channel formation, where price has pulled back from the upper line of the formation and sustained below $90. Moreover, RSI (14) has turned form overbought zone and MACD has shown negative crossover. As per the above technical structure, we are expecting further correction in the pair towards 89.30 levels.
GBPINR is expected to appreciate in the coming sessionAFTER POST CONTENT
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