The dollar fell heavily against a basket of major currencies despite mostly upbeat economic data while a sharp rise in the euro added to downside momentum. The index, fell 0.34% to 88.65.
EUR/USD performed well, capped on a number of attempts through 1.2520, closing up 0.82% on the day, having posted a daily high at 1.2523 and low at 1.2385.
GBP/USD finished up the NY session at 1.4220 between a range of 1.4261-1.4190 while otherwise, the political environment surrounding Brexit keeps the pound on tender hooks.
USD/JPY climbed from 109.20 to 109.75 (Jan 26 high) and then drifted back to 109.25, little changed on the day
USD/INR opens at 63.89 above the previous close of 63.78. For the first few hours prices were trading below the open and made at low of 63.72 but in the second half bull were in full swing were prices break above the open making an high of 64.24 and closing at 64.13.For the day we expect the pair to trade between 63.50 and 64.40. If prices sustain above 64 we might see prices testing 64.40 levels.
* USDINR trading range for the day is 63.52-64.56.
* Rupee weakened after the government revised upward its fiscal deficit target for the fiscal year 2019 in the budget.
* India reported a fiscal deficit of 6.21 trillion rupees for April-December or 113.6 percent of the budgeted target for the current fiscal year that ends in March.
* India’s annual economic growth in the fiscal year that ended in March 2017 was unchanged at 7.1 percent, a government statement showed.
* Prices are making lower high lower low pattern and closed above the resistance placed at 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 above 64 we might see prices testing 64.40 levels
* EURINR trading range for the day is 78.9-80.45.
* Euro recovers as the dollar held steady after the Federal Reserve signaled its confidence about inflation and growth in the world’s biggest economy.
* The common currency rose in January, amid prospects for the European Central Bank to begin normalizing monetary policy this year.
*Eurozone inflation slowed as expected on lower energy prices at the start of the year, giving more time for the central bank to start tightening.
* Prices made a new high highest since December 2014
* ADX=41 +DMI>-DMI indicating strong bull trend and RSI,MACD making higher high higher low indicating strong bull momentum
* Trend to remain bullish till 79 is not broken on the downside
* If prices sustain above 79.50 we might see prices testing 80.20 levels
* GBPINR trading range for the day is 90.03-92.09.
* GBP rose after Bank of England Governor Mark Carney said the central bank was turning its focus back to bringing down inflation.
* Broad dollar weakness also helped the pound shake off news that EC officials had rejected the City of London’s proposal to strike a post-Brexit free-trade deal
* Britain’s economy has demonstrated it was getting over the damage wrought by the 2007-09 financial crisis.
* Prices made a new high highest since July 2016
* ADX=39 +DMI>-DMI indicating strong bull trend and RSI,MACD breaking above the consolidation indicating strong bullish momentum
* Trend to remain bullish till 90 is not broken on downside
* If prices sustain above 90.94 we might we prices testing 91.90
* JPYINR trading range for the day is 58.16-58.79.
* JPY continues its weakness as the Federal Reserve voted to hold overnight interest unchanged, while paving the way for three rate hikes in 2018.
* BOJ Governor Kuroda: BOJ has no plan to issue digital currency now, careful consideration needed for issuing digital money.
* BOJ Governor Kuroda: There is no big problem in functions at banks. BOJ will persistently continue easing.
* Prices breakout above the lower high lower low pattern and closed above the swing high placed at 58.32
* ADX=28 +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 58.35 we might see prices testing 58.90 levelsAFTER POST CONTENT
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