#ChoiceBroking #CurrencyHighlights

1. Currency Highlights
02nd
Jan’2017
HighLights:
 Indian Rupee rose for second consecutive day to 67.93 on Friday
 US Chicago PMI plunged by 3 points to 54.6-mark in December
 Spanish Flash CPI gained by 1.5 percent in the existing month
 UK’s Housing Equity Withdrawal at deficit 10.9 bn Pounds in Q3’16
Indian Rupee gained for second consecutive day and appreciated around 17
paise to end at 67.93 against the US dollar on Friday. The currency appreciat-
ed on account of selling of dollars from exporters and banks along with track-
ing gains in the Asian currencies. Further, upbeat domestic market senti-
ments led to upside in the currency.
However, sharp upside in the currency was capped due to outflow of foreign
funds after selling of equities by institutional investors. The rupee has gained
around 32 paise or 0.47 per cent in last two trading sessions.
Indian Rupee moved in the range of 67.85 to 67.99 in Friday’s trade. The Re-
serve Bank of India (RBI) fixed reference rate for the dollar was seen at
67.9547 and Euro stood at 71.6175 as on 30th
Dec’16.
In cross—currency trades, the rupee inched up to 83.48 against the pound sterling from 83.49 yesterday while fell against the euro to settle
at 71.64 from 71.21 per euro. It recovered against the Japanese Yen to 58.10 per 100 yens from 58.43 previously.
For the month of December 2016, FII outflows in equities totalled at Rs.8176.29 crores ($1202.62 million) as on 30th
December 2016. Year
to date basis, net capital inflows stood at Rs.20566.18 crores ($3169.19 million) as on 30th
December 2016.
US Dollar Index declined around 0.4 percent in Friday’s trading session due to unfavourable economic data from the country. However,
sharp downside in the currency was cushioned as a result of rise in risk aversion in global market sentiments which led to increase in de-
mand for the low yielding currency.
US Chicago Purchasing Managers' Index (PMI) plunged by 3 points to 54.6-mark in December as against a rise of 57.6-level in November.
Euro against dollar rose around 0.23 percent on Friday on account of weakness in the dollar index coupled with favourable economic data
from the region. However, weak global market sentiments capped sharp gains in the currency.
Spanish Flash Consumer Price Index (CPI) gained by 1.5 percent in December as against a rise of 0.7 percent in November.
The Sterling Pound grew around 0.6 percent in Friday’s trade as a result of weakness in the dollar index along with favourable economic
data from the country. However, weak global market sentiments capped sharp gains in the currency.
UK’s Housing Equity Withdrawal was at deficit of 10.9 billion Pounds in Q3 of 2016 from a deficit of 13.1 billion Pounds in previous quarter.
The Japanese Yen against dollar depreciated around 0.3 percent in Friday’s trading session due to rise in risk appetite in global market sen-
timents in early part of the trade which led to decline in demand for the low yielding currency.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 102.38 102.68 (0.30) (0.29)
USD/INR(Spot) 68.07 68.21 (0.14) (0.21)
USD/INR(NseJan) 68.09 68.27 (0.18) (0.26)
EUR/INR(Spot) 71.15 71.04 0.11 0.15
EUR/INR(NseJan) 71.90 71.58 0.32 0.45
GBP/INR(Spot) 83.78 83.31 0.47 0.56
GBP/INR(NseJan) 83.78 83.88 (0.10) (0.12)
JPY/INR(NseJan) 58.36 58.76 (0.40) (0.69)
MarketHighlights

2. Technical View:
On daily chart, it has been observed that the JPYINR has
completed a Bullish Bat harmonic pattern at 57.55 levels
the coordinates of which are as follows:
Technical Parameter: XA of the leg from 56 to 67.90,AB
of the leg completed at 63.30 (i.e.38.20% of XA leg.), BC
of the leg completed at 67.50 (i.e. near 88.60% of AB leg)
and CD of the leg completed at 57.55 level. (i.e. 88% of
XA and 224% of BC leg).
On daily chart momentum indicator RSI is trading in
oversold zone which indicates up side momentum can
be seen in the prices.
In addition, momentum indicator MACD has shown posi-
tive crossover which suggest possibilities of rebound in
the prices on daily chart.
So for trading perspective, one could JPYINR buy in the
range of 58.25 with SL of 57.90 for target of 58.80 levels.
Pivot levels for the Day
Technical View:
The pair has shown breakout of its horizontal channel
at 67.50 levels on daily chart and price has retested its
breakout trend line at 67.40 levels.
On daily chart price has taken support of its 61.80% Fib-
onacci retracement levels.
Moreover, prices have been trading above its 50 DEMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has been trading above 40
levels, which suggest further positive momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown
positive crossover on hourly chart.
So for trading perspective, one could buy USDINR in
range 68 with SL of 67.75 for target of 68.50.
Currency Highlights
02nd
Jan’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.76 67.93 68.01 68.10 68.18 68.27 68.44
JPYINR 57.63 58.01 58.18 58.39 58.56 58.77 59.15

3. Pivot levels for the Day
Currency Highlights
02nd
Jan’2017
GBPINR EURINR
Technical View:
The price has taken support of its horizontal trend line
at 70.60 levels on daily chart. The EURINR pair has also
taken support of its falling trend line at 70.70 levels on
daily chart.
The pair has been trading above its 15 HEMA on hourly
chart, which suggest further bullishness can be seen in
the prices.
On daily chart momentum oscillator RSI has moved up
form its oversold zone, which suggest bullishness in the
prices.
A momentum indicator MACD has shown positive cross-
over on 4 hourly chart, which support our bullish view
to the prices.
For now we can expect prices should move higher to-
wards 72.60 levels in the coming trading session.
Technical View:
The price has shown breakdown of its rising channel
pattern at 85 levels on daily chart. The pair has been
facing resistance of its falling trend line at 86.10 levels
on daily chart. The prices have been facing resistance of
its horizontal line at 86 levels.
Moreover, prices have been trading below 50 DEMA,
which suggest short term trend looks negative.
Moreover, momentum indicator MACD has given nega-
tive cross over on daily chart, which gives the sign of
bearishness in the prices.
The momentum indictor RSI has been trading below 60
levels on daily chart, which suggest the possibilities of
further weakness in the prices.
For now we expect prices should move lower towards
82.90 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 83.26 83.52 83.65 83.78 83.91 84.04 84.30
EURINR 70.94 71.42 71.66 71.90 72.14 72.38 72.86

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
02nd
Jan’2017
Economic Indicators
Date Time Data Prior Expected Impact
01.01.17 02:15 PM Italian Manufacturing PMI 52.2 52.30 Actual > Forecast = Good for
currency; EURINR
01.01.17 02:30 PM Final Manufacturing PMI 54.9 54.9 Actual > Forecast = Good for
currency; EURINR

5. Currency Highlights
02nd
Jan’2017
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Amit Pathania
Digitally signed by Amit Pathania
DN: cn=Amit Pathania, o=Choice Equity Broking Pvt. ltd, ou=Research
Department, email=amit.pathania@choiceindia.com, c=IN
Date: 2016.12.31 14:03:18 +05'30'