Indian Rupee appreciated by 1.4 percent as dollar index weakened by 0.6 percent during last week mainly on account of softening crude oil prices and easing concerns over US-Sino trade war. Meanwhile, the rate of industrial production growth slowed down to a three-month low of 4.3 per cent in Aug’18. Retail inflation had fallen to a tenmonth low of 3.69 per cent before rising marginally to 3.77 per cent in Sep’18 on the back of slightly higher food and fuel prices.
Donald Trump discussed a host of issues including Syria, trade tensions with Saudi, China and North Korea during his meeting with world leaders in France. US CPI came in line with market expectations at 0.3 percent for Oct’18. Core retail sales data from US came in at 0.7 percent against market expectations of 0.5 percent for Oct’18. Meanwhile, in Jerome Powell’s latest speech he credited US Fed’s policy for the economy being in a good place.
USDINR is expected to move sideways in today’s session.
* USDINR trading range for the day is 71.67-72.23.
* Rupee rose to 10-week high on likely inflows into local stocks and weak dollar.
* India’s government and its central bank are getting close to ironing out some of their policy differences, as they seek to defuse worsening tensions.
* India’s headline consumer price inflation slowed more-than-expected in October, provisional figures from the statistics ministry showed.
* BUY USDINR NOV 2018 @ 71.85 SL 71.70 TGT 72.10-72.35. NSE
EURUSD appreciated by 1.1 percent last week while EURINR appreciated by 0.36 percent during the same time frame.
GDP data from Germany came in at -0.2 percent against market expectations of -0.1 percent. Meanwhile, EU commission had asked Italy to revise their budget plans. However, Economy Minister Giovanni Tria said that the growth forecast contained in the budget is the result of technical evaluations and ‘non-negotiable,’ suggesting that the country is ready to face the EU Commission’s sanctions creating more rifts between the two parties.
EURINR is expected to depreciat in today’s session.
* EURINR trading range for the day is 81.37-81.87.
* Euro traded in range as investors were hopeful after reports out of Italy said that Italian Prime Minister Giuseppe Conte was looking to work with the EU.
* Germany’s economy contracted at a faster-than-expected pace in the third quarter, marking the first decline since the first three months of 2015.
* France’s non-farm employment grew at a faster rate in the third quarter than in the previous three months, data showed.
* BUY EURINR NOV 2018 @ 82.00 SL 81.70 TGT 82.38-82.56. NSE
* GBPINR trading range for the day is 91.63-92.82.
* GBP remained under pressure as investors feared political turmoil in the country could see it crash out of the European Union without a divorce deal.
* UK PM May: I recognize and share concerns about the backstop. The decision to go forward was not an easy one but it was the right one
* UK PM May says people wanted the government to get on with it and get a deal that protects people of the UK
* BUY GBPINR NOV 2018 @ 92.32 SL 92.00 TGT 92.68-93.10. NSE
* JPYINR trading range for the day is 63.32-63.79.
* JPY traded in range as the Brexit turmoil drew investors toward the Japanese currency.
* A think-tank affiliated with the Bank of Japan has issued an academic paper arguing that ditching negative interest rates could help accelerate inflation.
* Deputy Prime Minister Taro Aso: We need to continue to make efforts on lack of labor
* BUY JPYINR NOV 2018 @ 63.85 SL 63.55 TGT 64.05-64.35. NSE
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