* USDINR trading range for the day is 70.62-71.21.
* Rupee gained on likely inflows into local stocks and debt after the Reserve Bank of India announced additional OMO purchase for November.
* Further, falling crude oil prices and overseas institutional investors buying local equities helped boost investor sentiment.
* The greenback rose after a Fed member reaffirmed the need for further rate increases amid higher safe haven bids on fear of simmering Sino-US trade tensions.
Indian Rupee appreciated by 0.21 percent as dollar index weakened by 0.6 percent during the day mainly on account of fall in oil prices and recovery in domestic equity market. Meanwhile, bond yield on the 10 year bond dropped by 9 basis points to hit a seven month low of 7.64 after RBI announced additional purchase of Rs. 40,000 crore from the open market in Dec’18.
Core durable goods orders from US came in at 0.1 percent against market expectations of 0.4 percent. Meanwhile, Donald Trump is likely to impose additional tariffs on Chinese goods of $200 billion from 10 percent to 25 percent if the trade talks between US and China fail. US economic advisor Larry Kudlow stated that Beijing’s response to Trump‘s demands has been very disappointing and unsatisfactory. CB consumer confidence from US came in at 135.7 for Nov’18 against market expectations of 136.2. GDP data from US came in at 3.5 percent against market expectations of 3.6 percent. In Jerome Powell’s latest speech he mentioned that he tightening cycle can come to end faster than expected.
* EURINR trading range for the day is 79.9-80.6.
* Euro remained under pressure as dollar held near two-week highs as concerns about Sino-U.S. trade tensions propped up safe haven currencies.
* ECB’s Praet says all policy instruments can be adjusted as needed
* ECB’s Praet says recent data points to loss of growth momentum
EURUSD appreciated by 0.69 percent yesterday while EURINR appreciated by 0.27 percent during the same time frame.
EU commission had rejected Italian budget and asked them to revise their spending plans. Italy iterated that they will try to cut their budget. EU government officials are likely to back EU commission disciplinary actions over Italy. Meanwhile, EU accepted the Brexit draft deal and Mario Draghi in his speech accepted that the European data have come on a weaker note which is expected as expansion matures.
* GBPINR trading range for the day is 90.21-91.08.
* GBP slumped as doubts grew about whether British Prime Minister Theresa May can get a Brexit agreement through a divided parliament.
* PM May began a tour of UK to drum up support for her Brexit divorce deal with EU but her deputy said parliament might reject it if asked to vote on it now.
* UK Brexit Sec Barclay: Tough task to get Brexit deal past parliament
GBP appreciated against the US dollar by 0.6 percent yesterday while GBPINR depreciated by 0.39 percent.
CPI from UK came in at 2.4 percent against market expectations of 2.5 percent for Oct’18. After securing a deal from EU, PM will try to convince her ministers for the deal before the voting on the deal on 11th Dec’18. Meanwhile, BOE published its report on Brexit, saying that in the worst case scenario, Brexit will lead to 8% fall in GDP short-term while the Pound could depreciate as much as 25%.
* JPYINR trading range for the day is 62.15-62.75.
* JPY traded in range as dollar seen supported after Federal Reserve Vice Chair Richard Clarida backed further rate hikes.
* Bank of Japan Governor Haruhiko Kuroda: I believe we will be able to gradually achieve 2% inflation.
* BoJ Gov Kuroda: Japan’s Public Debt Very Large – Will Maintain Powerful Monetary Easing To Achieve Price Target
JPYINR has closed flat on Wednesday and settled on negative note. On a the daily chart, pair has been falling down continuously from last four weeks. In addition, pair has managed to sustain below 100 days EMA on the daily chart. Moreover, a momentum indicator RSI (14) and MACD has corrected from highs and moved below support line; which indicates more correction in the pair. So based on the above analysis, we expect bearish movement in JPYINR (Nov) towards 62.10 levels.AFTER POST CONTENT
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