Forex Update for Exporters & Importers: 10th July 2018

Insignia Consultants

New Delhi

Tuesday, July 10, 2018

TIME: 9:11 am IST

DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS

(inter-bank prices below)

Executive summary

  • Political developments in UK will affect pound as well as euro.
  • Volatility in emerging market currencies will rise today.

World

UK pound fell after resignation of Boris Jonhson which raised worries of brexit negatively affecting UK economy. UK prime minister’s press conference after the resignations made some investors think of a regime change in UK over the coming months. NATO conference during the week will affect global currency market. One needs to remain on the sidelines till tomorrow as volatility will remain. Euro and pound need to trade over key supports to prevent a sell off.

India

If rupee rises against the US dollar today, then there it can move towards 69.00. There is no domestic news. Global direction of the US dollar, crude oil prices and stock markets should dictate the rupee today.

US dollar-Indian Rupee (usd/inr CMP 68.8050): Support: 68.4900. Resistance: 68.9500. (a) Rupee can rise to 68.9500 and 69.1025 as long as it trades over 68.5925.

Euro/Indian Rupee (Euro/inr CMP 80.8700): Support: 80.6950 Resistance: 81.1375. (a) Only a break of 81.1375 will trigger a rise to 81.4950. (b) Sellers will be there below 80.6950 today. (c) Euro/inr should consolidate in 80.5625-81.1375 wider range today.

UK Pound/Indian Rupee (Gbp/inr CMP 91.1625): Support: 90.6350 Resistance: 91.3825. (a) Cable needs to trade over 91.0350 to rise to 91.3025 and 91.4950 (b) Sellers will be there below 91.0350.

Japanese Yen/Indian Rupee (Jpy/inr CMP 61.9700): Support: 61.8500-62.0800. Resistance: 62.0825-62.2125. (a) There will be a sell off below 61.8600 to 61.7225 and 61.4925 (b) Yen/inr needs to trade over 62.0800 to be in bullish zone.

Euro/US dollar (euro/usd CMP 1.1751): Support: 1.1709 Resistance: 1.1803. Euro/usd needs to trade over 1.1709 to rise to 1.1866 and 1.1925 (b) Trend is neutral (c) Sell off will be there if 1.1803 is not broken today.

UK Pound/US dollar (gbp/usd CMP 1.3245): Support: 1.3191 Resistance: 1.3317. (a) Trend is neutral. (b) Cable needs to break and trade over 1.3317 to rise to 1.3388. (b) Sell off will be there if it trades below 1.3191.

US dollar/Japanese Yen (usd/jpy CMP 111.06): Support: 110.74 Resistance: 111.27. (a) Yen will break free from 110.10-110.76-111.54 trading range and form a new range. (b) Better to remain on the sidelines today.

US dollar/Indonesia Rupiah (usd/idr CMP 14339.30): Support: 14274.90 Resistance: 14387.70 (a) There will be a technical breakout if rupiah trades over 14361.10 to 14387.70 and 14456.70. (b) Sellers will be there below 14274.90 only.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, 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.

 

 

 

 

 

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