FX – MORNING UPDATE :
FX Morning Update USD INR February 5, 2024
USDINR opened at 82.92 on Friday and the pair traded in the 82.82-82.93 range. Spot USDINR closed at 82.91, loss of 7 ps for USD as against prior close of 82.98.
Thank you for reading this post, don't forget to subscribe!RBI reference rate was fixed at 82.84 on 02/02. Feb USD/INR closed at 82.98 on Friday, loss of 7 ps for USD as compared to prior day’s close of 83.05. Feb Euro/INR closed at 90.43, GBP/INR at 105.82 and Yen/INR at 56.83. 1 year USDINR fwd premia was trading at around 1.82% p.a. FX reserves stood at USD 616.73 bn, as on Jan 26 th.
|
PAIRS |
RBI REF RATE (02/02) |
|
USDINR |
82.84 |
|
EURINR |
90.13 |
|
GBPINR |
105.63 |
|
JPYINR |
56.58 |
In Feb, FPI’S have bought Rs 312 Cr of Equities and bought Rs 2267 Cr of debt . In last calendar year, FII’S have net bought Rs 172853 Cr of Equities and have net bought Rs 70489 Cr of debt.
Benchmark Nifty climbed 156 points (0.72%) on Friday. US S&P climbed 52 points (1.07%) on Friday. Nikkei declined 0.90% and Hang Seng climbed 0.52% y’day.
Euro is now at 1.0788, Pound at 1.2633, Yen at 148.40.
Commodities: Gold is now at USD 2039 and WT1Crude at USD 72/Brent at USD 77.50.
Interest rates: USD 10 Yr yield is at 3.88% and 3 m libor closed at 5.59%. Indian 10 yr benchmark yield closed at 7.05%.
Economic news: US Non-Farm Payroll employment rose 353k in January, significantly surpassing expectation of 178k. Prior month’s growth was also revised sharply higher from 216k to 333k. Both were well above monthly average of 255k growth in 2023.Unemployment rate was unchanged at 3.7%, below expectation of 3.8%. Labor force participation rate was unchanged at 62.5%. Average hourly earnings grew 0.6% mom, well above expectation of 0.3% mom. Annual hourly earnings growth also accelerated from 4.4% yoy to 4.5% yoy, above expectation of 4.1% yoy.
Data highlights: – US factory orders climbed 0.2% m/m.
Monday’s calendar : – US ISM(services)
-EU PMI(services), sentix investor confidence survey and PPI
|
USD/INR |
|
82.93 |
82.82 |
|
|
EUR/USD |
1.0788 |
1.0898 |
1.0781 |
|
|
GBP/USD |
1.2633 |
1.2772 |
1.2614 |
|
|
USD/JPY |
148.40 |
148.59 |
146.24 |
Daily Support/Resistance table
|
Currency Pairs |
Pivot |
R1 |
R2 |
R3 |
S1 |
S2 |
S3 |
|
EURO/USD |
1.0822 |
1.0863 |
1.0905 |
|
1.0746 |
1.0677 |
|
|
GBP/USD |
1.2673 |
1.2732 |
1.2831 |
|
1.2574 |
1.2515 |
|
|
USD/JPY |
147.74 |
149.24 |
150.09 |
|
146.89 |
145.39 |
|
|
USD/INR |
82.89 |
82.95 |
83 |
|
82.85 |
82.78 |
|
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
|
Currency Pair |
Supports |
Resistances |
Trend |
Remarks |
|
EURO/USD |
1.0770/1.0725 |
1.09 |
SIDE |
UP>1.09 |
|
GBP/USD |
1.2560/1.2480 |
1.28 |
SIDE |
UP>1.28 |
|
USD/JPY |
146/144.35 |
148.90/150 |
UP |
SIDE<145.90 |
|
USD/INR |
82.80 |
83.18/83.24 |
SIDE |
UP>83.35 |
|
USD/CHF |
0.8550 |
0.8850 |
SIDE |
DN>0.8550 |
Technicals: Spot closed below 20 and 50 day average but above 200 day moving averages.20 day moving average is at 83.08. 50 day moving average is at 83.20.200 day moving average is at 82.78. Daily MACD is in sell zone. Important support is at 82.80 and important resistance is at 83.17/83.24. Spot closed at the average level of the day.
Intraday supports and resistances for Feb contract are:
PP: 82.95, S1:82.90, S2:82.84, R1:83.02, R2:83.06.
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USD exports be hedged at 83.35/83.40. Imports be hedged at 82.92/82.80 for 3 months.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is between major moving averages. Major resistance is at 1.09/1.10. Next major support is at 1.0770/1.0725. Daily MACD is in sell zone, implying an important top at 1.1275. Weekly MACD is in buy zone, implying important bottom at 1.0450.
GBP/USD: The pair is between major moving averages. Daily MACD is in sell zone, implying important top at 1.2810 and weekly MACD is in buy zone, implying important bottom at 1.25. Important support is at 1.2550/1.2480. Important resistance is at 1.28/1.30.
USD/YEN: The pair is above all major moving averages. Daily MACD is in buy zone, implying important bottom at 145.90. Important resistance is at 148.90/150 and support is at 145.90/144.35.