Tag: Technical

Dollar edges up near 2-1/2-month high ahead of Fed outcome

The dollar edged closer to a 2-1/2-month high against a basket of currencies on Wednesday as traders awaited clues from the Federal Reserve about the timing of a U.S. interest rate increase.

A rate hike at the Fed’s two-day policy meeting which ends later on Wednesday is virtually priced out due to underlying concerns over a slowdown in China and the broader impact on global growth.

But many investors still expect the Fed to indicate that interest rates could rise as early as December. The index, which gauges the greenback against six rival currencies, stood at 96.958 , up about 0.1 percent from late U.S. trade and not far from a 2 1/2-month peak of 97.201 scaled on Friday.

Indian rupee ends at one-month low against US dollar, down 32 paise at 65.59

The rupee plunged by 32 paise against the US dollar to one-month low of 65.59 on fresh demand for the American currency from banks and importers amid persistent fall in equity markets coupled with strong foreign capital outflows.

 

The domestic unit opened lower at 65.39 as against last Friday’s level of 65.27 at the Interbank Foreign Exchange (forex) market and dropped further to 65.62 before ending at one-month low of 65.59, showing a loss of 32 paise or 0.49 per cent.

Sterling trades above $1.52, but lags euro on soft UK data

Sterling rose 0.4 percent against a struggling dollar on Tuesday, as investors fretted about when the U.S. Federal Reserve will raise interest rates amid growing doubts over a global recovery.

The International Monetary Fund (IMF) cut its global growth forecasts for a second time this year on Tuesday, citing weak commodity prices and a slowdown in China and said policies aimed at increasing demand were needed.

Important events and their explanation:

Time ( IST)	Currency	Economic Data	Actual	Expectation	Previous
1:00am	USD	FOMC Member Dudley Speaks
5:20am	JPY	Monetary Policy Meeting Minutes
6:00am	USD	FOMC Member Fischer Speaks
7:00pm	USD	Unemployment Claims		263K	260K
	USD	FOMC Member Dudley Speaks
	USD	Prelim Nonfarm Productivity q/q		0.10%	3.30%
	USD	Prelim Unit Labor Costs q/q		2.20%	-1.40%
7:40pm	USD	FOMC Member Fischer Speaks

 

Explanation:- Market is heading towards one of the most crucial events of the weeks, Unemployment claims and Non farm we actual data might come negative for the USD.

Quick Glance :

Instrument	Price	%Chg	Volume	OI
USD/INR	65.48	0.17	788526	960103
EUR/INR	71.56	-0.82	37048	48836
GBP/INR	100.92	0.07	21059	41217
JPY/INR	54.01	-0.64	7908	15311

 

Technical touch :

USDINR

As seen pair has pierced its prolonged Ascending triangle and trading above crucial 65.20 levels.

After a surprise move by the Chinese banks rupee depreciated and touched 64.80 levels.  We assume rupee to form a minor resistance at 65.60 levels.

Once can go long TILL 65.70 LEVELS.