#ChoiceBroking #CurrencyHighlights

1. Currency Highlights
06th
Jan’2017
HighLights:
 Indian Rupee rose for second day at 67.96 in Thursday’s trade
 US ADP Non-Farm Employment Change fell to 153,000 in Dec’16
 UK’s Services PMI expanded by 1 points to 56.2-mark in December
 Euro Zone RMPI grew by 1.8 points to 50.4-mark in December
 US ISM Non-Manufacturing PMI at 57.2-level in previous month
Indian Rupee gained for second consecutive session and appreciated around
9 paise to end at 67.96 against the US dollar on Thursday. The currency ap-
preciated on account of selling of dollars from exporters and banks coupled
with upbeat domestic market sentiments.
However, outflow of foreign funds after selling of equities by institutional
investors along with weak domestic market sentiments capped gains in the
currency. So far this fiscal year, foreign institutional investors bought $1.46
billion in equity, while they sold $5.69 billion in debt.
Indian Rupee moved in the range of 67.720 to 68.013 in Thursday’s trade.
The Reserve Bank of India (RBI) fixed reference rate for the dollar was seen at
67.7884 and Euro stood at 71.5574 as on 5th Jan’17.
For the month of January 2017, FII outflows in equities totalled at Rs.2261.61 crores ($332.27 million) as on 5th January 2017. Year to date
basis, net capital outflows stood at Rs.2261.61 crores ($332.27 million) as on 5th January 2017.
US Dollar Index by more than 1 percent in Thursday’s trading session due to rise in risk appetite in global market sentiments which led to
decline in demand for the low yielding currency. Further, unfavourable economic data from the country kept currency in negative territory.
US Automatic Data Processing, Inc. (ADP) Non-Farm Employment Change plunged by 62,000 to 153,000 in December as against a rise of
215,000 in November. Unemployment Claims fell by 28,000 to 235,000 for the week ending on 30th Dec’16 from 263,000 in prior week.
Final Services Purchasing Managers' Index (PMI) expanded by 0.5 points to 53.9-mark in December with respect to 53.4-level in November.
The Institute for Supply Management (ISM) Non-Manufacturing PMI unchanged at 57.2-level in the previous month.
Euro against dollar gained by more than 1 percent on Thursday on account of weakness in the dollar index along with upbeat global market
sentiments. However, sharp upside was capped as a result of mixed economic data from the region.
Euro Zone Raw Materials Price Index (RMPI) grew by 1.8 points to 50.4-mark in December as against a rise of 48.6-level in November. Euro
region Producer Price Index (PPI) fell to 0.3 percent in November from a gain of 0.8 percent a month ago.
The Sterling Pound rose around 0.8 percent in Thursday’s trade as a result of weaker dollar coupled upbeat global market sentiments.
Moreover, optimistic economic data from the country kept the currency in positive territory.
UK’s Services Purchasing Managers' Index (PMI) expanded by 1 points to 56.2-mark in December from 55.2-level in November.
The Japanese Yen against dollar appreciated by more than 1.5 percent in Thursday’s trading session due to rise in risk aversion in global
market sentiments in early part of the trade which led to increase in demand for the low yielding currency.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 102.46 102.45 0.01 0.01
USD/INR(Spot) 67.98 67.89 0.09 0.13
USD/INR(NseJan) 68.13 68.22 (0.09) (0.13)
EUR/INR(Spot) 71.28 71.19 0.09 0.13
EUR/INR(NseJan) 71.52 71.34 0.18 0.25
GBP/INR(Spot) 83.64 83.62 0.02 0.02
GBP/INR(NseJan) 83.88 83.75 0.13 0.15
JPY/INR(NseJan) 58.45 58.20 0.25 0.43
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 58.30 with SL of 58 for target of 58.90 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 67.95 with SL of 67.75 for target of 68.50.
Currency Highlights
06th
Jan’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.40 67.73 67.92 68.06 68.25 68.39 68.72
JPYINR 57.76 58.16 58.32 58.56 58.72 58.96 59.36

3. Pivot levels for the Day
Currency Highlights
06th
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 72.30 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
83.10 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 82.90 83.37 83.63 83.84 84.10 84.31 84.78
EURINR 70.94 71.29 71.41 71.64 71.76 71.99 72.34

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
06th
Jan’2017
Economic Indicators
Date Time Data Prior Expected Impact
06.01.17 07:00 PM Average Hourly Earnings m/m -0.1% 0.3% Actual > Forecast = Good for
currency; USDINR
06.01.17 07:00 PM Non-Farm Employment Change 178K 175K Actual > Forecast = Good for
currency; USDINR
06.01.17 07:00 PM Unemployment Rate 4.6% 4.7% Actual < Forecast = Good for
currency; USDINR

5. Currency Highlights
06th
Jan’2017
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Anish Vyas
Digitally signed by Anish Vyas
DN: cn=Anish Vyas, o=Choice Merchandise
Broking Pvt. Ltd, ou=Sr. Research Associate,
email=anish.vyas@choiceindia.com, c=IN
Date: 2017.01.06 08:48:49 +05'30'