#ChoiceBroking #Currencyreport: Indian Rupee extends its losses for eighth consecutive day on Monday

1. Currency Highlights
24th
May’2016
HighLights:
 Indian Rupee extends its losses for eighth consecutive day on Monday
 German Flash Manufacturing PMI rose to 52.4-mark in current month
 US Flash Manufacturing PMI declined by 0.3 points to 50.5-mark in
May
 Euro Zone Flash Manufacturing PMI fell to 51.5-mark in existing month
Indian Rupee extends its losses for eighth consecutive day to depreciate to
two and half month low and ended at 67.49 against the US dollar on Mon-
day. The currency had depreciated on account of sustained dollar demand
from oil importers and banks. Additionally, concerns over outflow of the
foreign capital coupled with stronger dollar index led to negative move-
ment in the currency. Further, sluggish domestic market sentiments kept
pressure on the currency. Indian Rupee moved in the range of 67.25 to
67.50 in Monday’s trading session. The currency had last touched 67.54
per dollar on 2nd
Mar’16. The Reserve Bank of India (RBI) reference rate for
dollar was seen at 67.3492 and Euro stood at 75.6197 on Monday.
In cross-currency trades, the rupee firmed up further against the pound sterling to end at 97.71 from 98.19 last Friday. Howev-
er, the local unit remained weak against the euro to settle at 75.66 against 75.65 and fell back against the yen to finish at
61.69 per 100 yens compared to 61.09 previously.
US Dollar Index dropped marginally around 0.1 percent in Monday’s trading session due to unfavourable economic data from
the country. However, rise in risk aversion in global market sentiments which led to increase in demand for the low yielding
currency cushioned sharp fall in the currency.
US Flash Manufacturing Purchasing Managers' Index (PMI) declined by 0.3 points to 50.5-mark in May as against a rise of 50.8-
level in April.
Euro against dollar plunged around 0.1 percent on Monday on account of weak global market sentiments coupled with mixed
economic data from the region. However, weakness in the dollar index prevented sharp fall in the currency.
French Flash Manufacturing Purchasing Managers' Index (PMI) increased by 0.3 points to 48.3-mark in May as against a rise of
48-level in April. French Flash Services PMI rose by 1.2 points to 51.8-level in current month from 50.6-mark in April. German
Flash Manufacturing PMI increased by 0.6 points to 52.4-mark in May as compared to 51.8-level a month ago. German Flash
Services PMI jumped by 0.7 points to 55.2-level in May with respect to 54.5-mark in April. Euro Zone Flash Manufacturing PMI
fell marginally to 0.2 points to 51.5-mark in existing month when compared to 51.7-level in April. Euro Zone Flash Services PMI
unchanged at 53.1-mark in the on-going month. Euro Zone Consumer Confidence was at negative 7-level in May from decline
of 9-mark in April. The Sterling Pound plunged around 0.1 percent in Monday’s trade on account of weak global market senti-
ments. However, weakness in the dollar index restricted sharp downside in the currency.
The Japanese Yen against dollar appreciated around 0.6 percent in Monday’s trade due to rise in risk aversion in global market
sentiments 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 95.37 95.34 0.03 0.03
USD/INR(Spot) 67.55 67.40 0.15 0.22
USD/INR(NseMay) 67.57 67.56 0.01 0.01
EUR/INR(Spot) 75.67 75.61 0.06 0.08
EUR/INR(NseMay) 75.80 75.83 (0.03) (0.04)
GBP/INR(Spot) 97.73 97.74 (0.01) (0.01)
GBP/INR(NseMay) 97.79 98.45 (0.66) (0.67)
JPY/INR(NseMay) 61.79 61.24 0.55 0.89
MarketHighlights

2. Technical View:
The JPYINR price has been taking support of rising trend line
at 61 levels on hourly chart. Prices have been taking support
of 50% Fibonacci retracement levels form its previous rally of
58 to 63 levels.
Moreover, Pair has been trading above its 50 hourly exponen-
tial moving average which suggest short term trend remains
up.
On hourly chart, momentum oscillator RSI has moved above
its 45 levels, which gives positive confirmation to the prices.
A momentum indicator MACD has shown positive crossover
on hourly chart, which indicates short term trend remains
Bullish.
For now we expect prices to move higher towards 62 levels in
coming trading sessions.
Pivot levels for the Day
Technical View:
The price has shown breakout of its rectangle pattern triangle
at 67 levels on daily chart with heavy volumes. The pair has
given breakout of its head and shoulder neckline pattern at
67.05 levels on daily chart.
Moreover, price have been trading above its 21 daily expo-
nential moving average which suggest near term trend re-
mains positive. So any dips in the prices lower towards 67.45
level, used as buying opportunity.
A momentum indicator RSI has moved above 60 levels on
daily chart, which suggest bullishness in the prices.
Momentum indictor MACD has shown positive crossover and
trading above single line on hourly chart, which gives posi-
tive confirmation to the prices.
For now we expect prices to move higher towards 67.70 lev-
els in few trading sessions.
Currency Highlights
24th
May’2016
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.18 67.35 67.46 67.52 67.63 67.69 67.86
JPYINR 60.65 61.15 61.49 61.65 61.99 62.15 62.65

3. Pivot levels for the Day
Currency Highlights
24th
May’2016
GBPINR EURINR
Technical View:
The pair has been taking support of its rising trend line at
75.70 levels on daily chart. Price has given breakout of its
symmetrical triangle pattern on hourly chart at 75.75 levels.
On the other hand, Pair has been trading above its 50 hourly
exponential moving average which indicates that trend is
remains positive.
A momentum oscillator RSI have been trading above 45 lev-
els on daily chart which gives bullishness to the prices.
Moreover, momentum indicator MACD has shown positive
crossover on four hourly chart which support our bullish view
on the pair.
For now we expect prices should move higher towards 76.30
levels in the coming trading sessions.
Technical View:
The price has been trading in its falling channel pattern with
and price has faced resistance of its upper band of channel
pattern on daily chart. Moreover, price has formed cross doji
candle stick on daily chart which gives negative confirmation
to the prices.
On the other hand, Pair has been trading above its 200 daily
exponential moving average which indicates that medium
term trend is remains bearish.
A momentum oscillator RSI have been trading below 60 lev-
els on daily chart which gives the sign of bearishness to the
prices.
Moreover, momentum indicator MACD has shown negative
crossover on 4 hourly chart which support our bearish view
on the pair.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 96.93 97.38 97.59 97.83 98.04 98.28 98.73
EURINR 75.21 75.47 75.63 75.73 75.89 75.99 76.25

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Economic Indicators
Date Time Data Prior Expected Impact
24.05.16 2:00pm Public Sector Net Borrowing 4.2B 6.3B Actual > Forecast = Good for
currency; GBPINR
24.05.16 2:30pm German ZEW Economic Senti-
ment
11.2 12.1 Actual > Forecast = Good for
currency; EURINR
24.05.16 2:30pm ZEW Economic Sentiment 21.5 23.4 Actual > Forecast = Good for
currency; EURINR
24.05.16 2:30pm Inflation Report Hearings Actual > Forecast = Good for
currency; GBPINR
24.05.16 All Day Eurogroup Meetings
24.05.16 7:30pm New Home Sales 511K 521K Actual > Forecast = Good for
currency; USDINR
24th
May’2016

5. Currency Highlights
24th
May’2016
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: 2016.05.24 08:44:48 +05'30'