Indian Rupee appreciated by 0.33 percent as dollar index weakened by 0.13 percent during the day as current RBI Governor Urjit Patel resigned from his post. Meanwhile, in the monetary policy meeting held by RBI last week the PMC decided to keep the interest rates unchanged at 6.25 percent and maintained its stance of calibrated tightening. Shaktikanta Das gets appointed as the new RBI Governor.
Donald Trump and Xi Jinping have reached a truce in the US-China trade war for a period of 90 days. US won’t be imposing additional tariffs on China. The current rate of 10 percent tariffs would remain on Chinese goods. Also, in the recent dialogue between US and China Donald Trump was happy with the process of trade talks and said big news is likely to be awaited by the market in the coming days. Nonfarm payroll data came in at 155,000 against market expectations of 198,000 for Nov’18. China announced it´s considering reducing tariffs on American cars from 40% to 15%. US PPI came in at 0.1 percent for Nov ’18 against market expectations of 0 percent.
USDINR is expected to depreciate in today’s session.
* USDINR trading range for the day is 71.37-72.93.
* Rupee was jolted after Reserve Bank of India Governor, Urjit Patel, resigned abruptly after a months-long tussle over policy with the government.
* Government will do whatever is required to make it business as usual after RBI governor resigns: Niti Aayog official
* Institutional capabilities are very strong will do whatever is required for markets, economy: policy panel official
>> BUY USDINR DEC 2018 @ 72.15 SL 71.92 TGT 72.36-72.52. NSE
EURUSD depreciated by 0.36 percent yesterday while EURINR appreciated by 0.67 percent during the same time frame.
German factory orders came in at 0.3 percent against market expectations of -0.4 percent for Nov’18. Italy’s Finance Minister Tria said that the government isn’t planning major changes to the budget, ahead of a meeting between EU’s Juncker and Italy’s PM Conte this Wednesday. Also, French President Macron is facing a nonconfidence vote from left-wing opposition after riots took over Paris.
EURINR is expected to move sideways in today’s session.
* EURINR trading range for the day is 81.3-83.18.
* Euro remained supported as U.S. dollar slipped on reports that Beijing and Washington are preparing their next stage of trade talks.
* EU’s Moscovici: Italy shows willingness for budget compromise
* Euro zone business growth was at its weakest pace in over two years last month as a manufacturing-led slowdown showed further signs of spreading to the service industry.
>> SELL EURINR DEC 2018 @ 82.10 SL 82.35 TGT 81.82-81.60. NSE
GBP depreciated against the US dollar by 0.67 percent yesterday while GBPINR depreciated by 0.11 percent.
UK PM May’s leadership came again under scrutiny after she decided to pull out the Brexit deal from the Parliament and rush back to Brussels, trying to get a deal that has chances to pass the Commons. The vote on the new draft will happen on January 29. Meanwhile, quarterly GDP from UK came in line with market expectations at 0.1 percent. Manufacturing production came in at -0.9 percent for Nov’18 against market expectations of 0 percent.
GBPINR is expected to move sideways in today’s session.
* GBPINR trading range for the day is 89.94-91.89.
* GBP dropped after British Prime Minister Theresa May postponed a crucial vote on her Brexit deal, raising the risk of a chaotic exit from the European Union.
* PM May postponed a parliamentary vote, which was due to take place on Tuesday, on her Brexit deal to seek more concessions.
* The move stoked more uncertainty as Britain now faces Brexit without a deal, a last-minute agreement or another EU referendum.
> SELL GBPINR DEC 2018 @ 90.75 SL 91.05 TGT 90.48-90.20. NSE
* JPYINR trading range for the day is 63.2-64.63.
* JPY gained as the U.S. dollar slipped on reports that Beijing and Washington are preparing their next stage of trade talks.
* The average of household spending in Japan was down 0.3 percent on year in October, the Ministry of Internal Affairs and Communications said.
* The M2 money stock in Japan was up 2.3 percent on year in November, the Bank of Japan said – standing at 1,010.5 trillion yen.
* SELL JPYINR DEC 2018 @ 64.00 SL 64.25 TGT 63.75-63.50. NSEAFTER POST CONTENT
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