Accurate Currency Weekly Market Report

Weekly Report on Forex Market –12th Fab to 16th Fab 2018

Market Outlook

The rupee on Friday opened with a loss of 15 paise at 64.41 against the dollar on fears that the regime of lower borrowing costs is nearing its end with a quicker removal of easy monetary policy by central banks worldwide The U.S. dollar slipped lower against other major currencies on Friday, as the U.S. government was pushed into a second shutdown since the beginning of the year after a vote on a budget deal was delayed by Congress. U.S. congressional leaders had reached a two-year budget deal on Wednesday to raise government spending by almost $300 billion.

Fundamental News

  • The euro gained against the dollar on Friday but the single currency was still headed for its worst weekly performance since October after the global stock market sell-off squeezed investors betting against the greenback out of their positions.
  •  The yen neared a four-month high against the dollar as global stock markets plunged again, safe-haven currencies.

Global Updates

  • Japan Tertiary Industry Index (MoM) registered at -0.2%, below expectations (0.2%) in January.
  •  China Producer Price Index (YoY) came in at 4.3%, below expectations (4.4%) in January
  •  Japan Money Supply M2+CD (YoY) below expectations (3.6%) in January: Actual (3.4%)
  •  European Monetary Union Markit PMI Composite came in at 58.8, above forecasts (58.6) in January.
  •  Switzerland Foreign Currency Reserves fell from previous 744B to 731B in December.
  • India RBI Interest Rate Decision (Repo Rate) meets expectations (6%) in February 7.

USDINR pair has given some bounce back from its support level after the fall in starting of the week and closed near to its resistance level. For upcoming week if it manages to hold above important resistance of 64.7000 then it may move towards the next resistance level 65.2000. On southern side it has crucial support level of 64.2000 below this mark it can drag down towards next support level of 63.7000.

EURINR pair last week witnessed steep fall after the good upside movement and closed with negative note. For upcoming sessions if it able to breach its major support zone 78.8000 then more selling can be seen towards next support level of 78.0000. On higher side it has resistance level of 79.5000 above this it may continue its upside movement and test next resistance level of 80.0000.

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