1st December: Daily Forex Trend
Friday, December 01, 2017
TIME: 9:54 am IST
DAILY FOREX TRENDS
(inter-bank prices below)
Trump Tax break resulted in a weaker US dollar. Next week should be very volatile for the currency markets. There are lot of market moving economic news.
Fiscal deficit is expected to break the set targets. Long term optimism on Indian economy is luring global inflows in India. Fundamentals are still on the weaker side. The only way Modi government will manage fiscal deficit is sale of its public sector units and/or reduce planned defence expenditure.
US dollar-Indian Rupee (usd/inr CMP 64.6150): Support: 64.4650. Resistance: 64.6875. Range Trade will be there today. 64.4950-64.7225 should be the wide trading range. Sell stop losses will be triggered if usd/inr breaks 64.7225.
Euro/Indian Rupee (euro/inr CMP 76.8175): Support: 76.6175. Resistance: 77.0550. Long term resistance is at 77.0550. A break of 77.0550 anytime in December will pave the way for 79.50-80.00 zone. Exporters use a stop loss of 76.3950 for their near term receivables
UK Pound/Indian Rupee (gbp/inr CMP 87.3925): Support: 87.2225. Resistance: 87.4975. Target of 87.3350 achieved. Cable needs to trade over 87.2225 till next week to zoom to 88.5125 and 89.4050. There will be sellers below 87.2225 today.
Euro/US dollar (euro/usd CMP 1.1911): Support: 1.1889. Resistance: 1.1957. Back to square one as euro/usd needs to break 1.1987 for another wave of rise to 1.2163. Support is at 1.1889. There will be sellers below 1.1889 to 1.1859 and 1.1812.
UK Pound/US dollar (gbp/usd CMP 1.3533): Support: 1.3507. Resistance: 1.3561. Long term resistance is between 1.3605-1.3642. Only a break of 1.3605-1.3642 will trigger another wave of rise to 1.4068 and 1.4522. Exporters should hedge their receivables as long as 1.3605-1.3642 is not broken.
US dollar/Japanese Yen (usd/jpy CMP 112.53): Support: 112.12. Resistance: 112.87. Resistance is between 112.95-113.40 zone. Only a break of 112.95-113.40 zone will result in 114.33 and 115.50. Initial support is at 112.12. There will be sellers below 112.12.
US dollar/Indonesia Rupiah (usd/idr CMP 13538.00): Support: 13519.95. Resistance: 13551.00. The 13460-13600 wider trading range will be broken soon and a new range will be formed soon. Be careful. Today there will be another wave of rise if and only if rupiah trades over 13551.
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.