Weekly Report on Forex Market –01st Jan to 05th Jan 2018
The rupee opened 4 paise down at 64.04 against dollar on the final trading day of 2017. Year-end demand for the American currency from banks and importers mainly impacted the rupee. . Fear and panic gripped currency market sentiment initially on concerns that the government’s additional borrowing this fiscal may lead to a breach in the fiscal deficit target for the first time in four years. Ahead of India FX reserve, USD climed from previous $401.39B to $404.92B.
- China is responding to Washington’s tax overhaul by offering foreign companies a break on Chinese taxes in a bid to retain investment. The measure announced late Thursday is Beijing’s first major reaction to the U.S. decision to cut corporate tax rates.
- The dollar continued to fall against other major currencies on the last trading day of the year.Trading volumes are expected to remain thin ahead of the New Year’s Day holiday weekend.
• European Monetary Union M3 Money Supply (3m) declined to 5% in November from previous 5.1%.
• The international trade deficit was $69.7 billion in November, up $1.6 billion from $68.1 billion in October,” the U.S. Census Bureau announced on Thursday.
• US: Wholesale inventories for November $610.2 billion, up 0.7% from October 2017.
• United States Initial Jobless Claims above forecasts (240K) in December 22: Actual (245K).
• Greece Producer Price Index (YoY) increased to 5.5% in November from previous 3.2%.
USDINR started the week with good recovery but in last two trading session it was unable to hold its higher level and came down, closed near to its crucial support zone. For upcoming week if it breaks important support level of 63.9000 then it can continue its down trend. Whereas 64.5000 act as a resistance level if it manages to hold this mark then correction may be expected.
EURINR pair showed its strength throughout the week and closed near to its downward sloping trend line. For upcoming week if it manages to hold its major resistance level of 77.0000 then more upside movement can be witness. On southern side it has crucial support level of 75.9000 below this some correction can be seen.
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