Weekly Currency Market Report

 

Market Outlook
Against the US Dollar, the Indian Rupee crumbled below the 68-mark to end 3 week low after the country’s trade deficit widened more than expected amid renewed global trade war fears. However, due to strong US dollar and emergence of macroeconomic headwinds, the Indian currency suffered hardest hit among Asian currencies. Dollar retreated as US said it would move ahead with hefty tariffs on Chinese goods, raising fears of a trade war between the world’s two largest economies.


Fundamental News

  •  The Euro was slumped nearly 1.9% that is headed for its worst weekly loss in 19 months on Friday after a cautious European Central Bank signaled it will keep interest rates at record lows well into next year.
  •  Against the greenback, the Aussie has fallen by about 1.8% so far. Lackluster data followed by hawkish guidance by the Fed.

Global UpdatesGlobal Updates

• United Kingdom Industrial Production (YoY) below forecasts (2.7%) in April: Actual (1.8%).

• Japan Tertiary Industry Index (MoM) registered at 1% above expectations (0.6%) in May.• European Monetary Union Employment Change (YoY) below expectations (1.6%) in 1Q: Actual (1.4%).

• India WPI Inflation came in at 4.43%, above forecasts (3.76%) in May.

• China FDI – Foreign Direct Investment (YTD) (YoY): 1.3% (May) vs 0.1%.

• European Monetary Union Trade Balance s.a. below expectations (€20.2B) in April: Actual (€18.1B).

USDINR

USDINR after giving positive opening found strong support around its psychological level of 67.9000 and closed above it. Now for upcoming session, if currency pair sustain above this support mark than continue positive movements towards resistance level of 68.2000. On lower levels 67.9000 is act as support for it.

 

EURINR

EURINR unable to sustain on higher levels found resistance and drags down towards its support on daily chart closed near to it. Now, if continue negative movements than next support for the currency pair is seen around 78.6000 below which it will come in negative territory. On higher levels 79.2000 is act as immediate resistance for it.

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