#ChoiceBroking #CurrencyHighlights

1. Currency Highlights
17th
Jan’2017
HighLights:
 India’s WPI rose to 3.39 percent in the month of December
 US markets shut yesterday due to Martin Luther King Day
 India’s WPI Food inflation fell by 0.7 percent in Dec’16
 Japan’s Prelim Machine Tool Orders grew 4.4 percent in Dec
Indian Rupee recovered from its low and appreciated marginally
around 6 paise to end at 68.10 against the US dollar on Monday. The
currency appreciated on account of selling of dollars from exporters
and banks. Further, upbeat domestic market sentiments led to posi-
tive movement in the currency.
However, outflow of foreign funds from selling in equities by the insti-
tutional investors capped gains in the currency. So far this year, for-
eign institutional investors have sold $459.40 million in equity and
bought $33.8 million in debt. Additionally, unfavourable inflation from
the country prevented positive movement in the currency.
Indian Rupee moved in the range of 68.09 to 68.27 in Monday’s trade. The Reserve Bank of India (RBI) fixed reference rate for
the dollar was seen at 68.1558 and Euro stood at 72.4155 as on 16th Jan’17. For the month of January 2017, FII outflows in
equities totalled at Rs.3911.81 crores ($574.43 million) as on 16thJanuary 2017. Year to date basis, net capital outflows stood
at Rs.3911.81 crores ($574.43 million) as on 16thJanuary 2017.
India’s Wholesale Price Index (WPI) rose to 3.39 percent in December as against a rise of 3.15 percent in November. WPI Food
inflation plunged by 0.7 percent in December from a gain of 1.54 percent a month ago. WPI Fuel inflation expanded by 8.65
percent in previous month with respect to 7.07 percent in November. WPI Manufacturing inflation jumped to 3.67 percent in
December when compared to 3.2 percent in earlier month.
US Dollar Index dropped around 0.2 percent in Friday’s trading session due to unfavourable economic data from the country.
Further, rise in risk appetite in global market sentiments in later part of the trade which led to decline in demand for the low
yielding currency.
Euro against dollar dropped around 0.23 percent on Monday on account of weak global market sentiments. Further, estimates
of unfavourable economic data from the region kept the currency in negative territory.
The Sterling Pound rose around 0.07 percent in Monday’s trade as a result of forecast for optimistic economic data from the
country. However, sharp upside in the currency was restricted due to weak global market sentiments.
The Japanese Yen against dollar appreciated around 0.1 percent in Monday’s trading session due to rise in risk aversion in
global market sentiments which led to increase in demand for the low yielding currency. Further, favourable economic data
from the country led to positive movement in the currency.
Japan’s Tertiary Industry Activity grew by 0.2 percent in the month of November. Prelim Machine Tool Orders expanded by 4.4
percent in December from a previous fall of 5.6 percent in November.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 101.19 101.51 (0.32) (0.32)
USD/INR(Spot) 68.11 68.18 (0.07) (0.10)
USD/INR(NseJan) 68.22 68.28 (0.06) (0.09)
EUR/INR(Spot) 72.18 72.57 (0.39) (0.54)
EUR/INR(NseJan) 72.29 72.73 (0.44) (0.61)
GBP/INR(Spot) 82.13 83.10 (0.97) (1.18)
GBP/INR(NseJan) 82.37 83.49 (1.12) (1.36)
JPY/INR(NseJan) 59.76 59.61 0.15 0.25
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:
The pair has given breakout of its horizontal pattern at
59.20 levels on daily chart.
Moreover, prices have been trading below its 50 DSMA
which gives the sign of bullishness in the prices.
On daily chart momentum indicator RSI is trading above
50 levels 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 59.60 with SL of 59.20 for target of 60.10 levels.
Pivot levels for the Day
Technical View:
The pair has been moving in its rising channel pattern
and prices have been facing resistance of its upper band
of channel pattern at 68.60 levels on hourly chart.
The price has faced resistance of its horizontal trend line
at 68.40 levels on hourly chart.
Moreover, prices have been trading below its 21 HSMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has shown bearish range
shift at 58 levels, which suggest further negative mo-
mentum can be seen in the prices.
In addition, momentum indicator MACD has shown
negative crossover on hourly chart.
So for trading perspective, one could sell USDINR in
range 68.35 with SL of 68.60 for target of 67.80.
Currency Highlights
17th
Jan’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.92 68.10 68.16 68.28 68.34 68.46 68.64
JPYINR 59.14 59.48 59.62 59.82 59.96 60.16 60.50

3. Pivot levels for the Day
Currency Highlights
17th
Jan’2017
GBPINR EURINR
Technical View:
The price has taken support of its horizontal trend line
at 71.80 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 21 DSMA on daily
chart, which suggest further bullishness can be seen in
the prices.
On daily chart momentum oscillator RSI has been mov-
ing above 50 levels on daily chart, which suggest bullish-
ness in the prices.
A momentum indicator MACD has shown positive cross-
over on daily chart, which support our bullish view to
the prices.
For now we can expect prices should move higher to-
wards 73 levels in the coming trading session.
Technical View:
The prices has been facing resistance of its falling trend
line at 84.20 levels on hourly chart.
The price have shown breakdown of its rising channel
pattern at 83.60 levels on hourly chart and price has
rested its channel breakdown trend line at 83.50 levels.
Moreover, prices have been trading below 21 HSMA,
which suggest short term trend looks weak.
Moreover, momentum indicator MACD has given nega-
tive cross over on hourly chart, which gives the sign of
bearishness in the prices.
The momentum indictor RSI has been trading below 60
levels on hourly chart, which suggest the possibilities of
further downside momentum in the prices.
For now we expect prices should move lower towards
81.60 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 81.17 81.72 82.05 82.27 82.60 82.82 83.37
EURINR 71.42 71.92 72.11 72.42 72.61 72.92 73.42

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
17th
Jan’2017
Economic Indicators
Date Time Data Prior Expected Impact
17.01.17 12:00 AM BOE Gov Carney Speaks 0.4% 0.1% More hawkish than expected =
Good for currency; GBPINR
17.01.17 03:00 PM CPI y/y 1.2% 1.4% Actual > Forecast = Good for
currency; GBPINR
17.01.17 Tentative Prime Minister May Speaks

5. Currency Highlights
17th
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: 2017.01.17 08:52:36 +05'30'