Yesterday rupee depreciated by 0.48 as dollar index strengthened by 0.2 percent. Rupee crashed to a 15 month low below the 67 mark on account of surging demand for dollar as crude oil prices zoomed past $75/barrel levels. India being a net importer of crude oil any sharp rises in prices affects its import bills and disrupts the fiscal position. The manufacturing PMI from India increased to 51.6 in Apr’18 against 51 in the previous month. Also, services PMI from India for Apr’18 came in at 51.4 against 50.3 in Mar’18.
In the latest FOMC meeting the committee decided to keep interest rates unchanged at 1.75% which was expected by the market. They also noted that inflation has moved closer to 2 percent in this period. The FED also noted some improvements in the economy stating business fixed investment continued to grow strongly. The retirement of FOMC member Dudley in June’18 will open the door for a hawk on FOMC. Non-farm employment payroll came in at 164,000 for Apr’18 against market expectations of 190,000.
USDINR is expected to move sideways in today’s session.
>> BUY USDINR MAY 2018 @ 67.20 SL 67.05 TGT 67.44-67.60
EURUSD depreciated by 0.32 percent while EURINR depreciated by 0.34 percent during the same time frame.
EU commission proposes 55 billion euros for Euro zone 2021-2027 budget for supporting investment in the region. Euro zone CPI came in at 1.2% for Apr’18 against market expectations of 1.3%. Euro zone manufacturing PMI came in line with market expectations at 56.2 for Apr’18. Also, services PMI came in line with market expectations for Apr’18 at 54.7. German factory orders decline to -0.9% for Apr’18 against market expectations of 0.5%.
EURINR is expected to appreciate in today’s session.
>> SELL EURINR MAY 2018 @ 80.35 SL 80.60 TGT 80.02-79.90
GBP depreciated against the US dollar by 0.18 percent while GBPINR depreciated by 0.66 percent.
Pound declined during the week on account of resurgence for Brexit uncertainties and the resignation of one of PM Theresa May’s key European allies in government according to strategists. Services PMI from UK came in at 52.8 against market expectations of 53.5 for Apr’18. Construction PMI from UK came in 52.5 for Apr’18 against market expectations of 50.5. Also, BOE will be holding their monetary policy meet on 10th May 2018.
GBPINR is expected to move sideways in today’s session.
>> BUY GBPINR MAY 2018 @ 91.25 SL 90.80 TGT 91.48-91.70AFTER POST CONTENT
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