31st October: Daily Forex Trend
Tuesday, October 31, 2017
TIME: 9:14 am IST
DAILY FOREX TRENDS
(inter-bank prices below)
All eyes, ears and nose are towards America. Trump’s Russia meddling in US elections, new Federal Reserve chief and US October nonfarm payrolls can affect the US dollar. Economically US dollar should gain further. But whenever markets focuses on factors than the economic, US dollar has a tendency to weaken against almost all global currencies. I expect a roll coaster ride for currency prices for the next one week. Hedge is the key. In the short term those who have receivables and payables in any currency need to hedge or use trailing stop losses. On a bad day currency losses can erode a significant portion of profit. One should use the hedging tools available to maximize gains.
The congress is all out trying to tell the people about the ill effects of demonetization and GST. Goods and service tax (GST) originally is the brain child of the Congress. Infact most of the policies measures taken by the Modi government has been the brain of the congress. The difference is that the congress party failed to implement while Modiji is a master implementer. Rupee will sing to the global tune. I will prefer to hedge near term foreign exchange exposure.
US dollar-Indian Rupee (usd/inr CMP 64.8050): There will be a technical breakdown below 64.7225 to 64.6450 and 64.4950. On the higher side as long as 64.8850 is not breached, upside risk will be limited.
Euro/Indian Rupee (euro/inr CMP 75.4100): It can rise to 75.5250 and 75.6750 as long as it trades over 75.3125. Sell off will be there only below 75.3125.
UK Pound/Indian Rupee (gbp/inr CMP 85.5775): Sterling can rise to 85.8850 as long as it trades over 85.4700. Sellers will be there only below 85.4700.
Euro/US dollar (euro/usd CMP 1.1636): It needs to trade over 1.1608 today to rise to 1.1670 and 1.1739. There will sellers below 1.1609 to 1.1579 and 1.1548.
UK Pound/US dollar (gbp/usd CMP 1.3205): Sterling can rise to 1.3237 and 1.3294 as long as it trades over 1.3182. Sellers will be there below 1.3182.
US dollar/Japanese Yen (usd/jpy CMP 113.15): There will be a technical breakdown below 113.10 to 112.51-112.39 and 111.98. overall trend is down as long as yen trades below 113.53.
US dollar/Indonesia Rupiah (usd/idr CMP 13572.00): Rupiah can fall to 13556.50 and 13528 as long as it trades below 13597.60.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
NOTES TO THE ABOVE REPORT
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED
Indian Standard Time (IST): +5:30 GMT
Current Market Price (CMP)
All foreign exchange prices are for inter-bank rates.