1. 3rd Dec’14 Currency Highlights
USDINR
Technical Outlook:
USDINR prices gave a gap down opening
and drifted lower towards 61.8%
retracement level of the up move from
62.01 – 62.63 levels.
The momentum indicator, RSI has taken
support near 40 which gives positive
confirmation for prices.
On hourly timeframe the prices have taken
support near the lower band of the
Bollinger band which would suggest prices
could now move towards center band near
62.45 levels.
Fundamental News:
The dollar was broadly higher against the other major currencies on Tuesday, as the yen remained under pressure after ratings agency Moody’s downgraded Japan's sovereign debt rating and as markets were jittery ahead of the European Central Bank's upcoming policy meeting.
The dollar declined from the highest level in more than five years amid speculation the currency may have strengthened too much, too fast.
The greenback slipped versus most of its 16 major peers after a gauge of the Bloomberg Dollar Spot Index’s relative strength exceeded 70 on Nov. 28, a level some traders consider a signal an asset may reverse course.
Buy Levels: 62.20 - 62.25
Sell Levels: 62.50 - 62.55 Economic Indicators Date Time Data Prior Expected Impact
03.12.14
8.15AM
ADP Non-Farm Employment Change
230K
223K
Actual < Forecast = Good for currency
03.12.14
10.00 AM
ISM Non-Manufacturing PMI
57.1
57.5
Actual < Forecast = Good for currency
03.12.14
02.00 PM
FOMC Member Brainard Speaks
2. 3rd Dec’14 Currency Highlights
EURINR
Technical Outlook:
Prices traded in a range where upper band
remains to be 77.9 and lower band is at
77.45 levels.
The mentioned retracement level
happens to be the previous intermediate
high which could act as a resistance level.
On smaller timeframe, the momentum
indicator, RSI has taken resistance at 60
which would give negative confirmation
for the prices to move lower.
Fundamental News:
The euro remained under pressure after data on Friday showed that the annual rate of euro area inflation slowed to a five year low of 0.3% last month, down from 0.4% in October.
The weak data added to pressure on the ECB to step up measures to spur growth and stave off the threat of deflation ahead of its upcoming policy meeting on Thursday
Sentiment on the single currency also remained vulnerable after data on Monday showed that the euro zone’s manufacturing purchasing managers' index slowed to 50.1 from a preliminary reading of 50.4 last month, just barely above the 50 level separating growths from contraction.
Earlier Tuesday, official data showed that the number of unemployed people in Spain declined by 14,700 in November, compared to expectations for an increase of 57,300, after a 79,200 rise in October.
Buy Levels:77.35 – 77.40
Sell Levels:77.90 – 77.95
Economic Indicators Date Time Data Prior Expected Impact
03.12.14
3.45PM
Italian Services PMI
50.8
50.9
Actual < Forecast = Good for currency
3. 3rd Dec’14 Currency Highlights
GBPINR
Technical Outlook:
On hourly timeframe, prices traded in a
range where upper range remains at
98.23 and lower range at 97.20 levels.
On 15 minutes timeframe the momentum
indicator, RSI has formed bullish range
shift which would indicate bullishness in
prices.
As it can be observed from the chart,
prices are trading above both the EMA
which would give positive confirmation
for prices.
Fundamental News:
The pound slipped lower against the U.S. dollar on Tuesday, after data showed that construction activity in the U.K. expanded at the slowest rate in more than a year in November.
GBP/USD hit 1.5694 during late European morning trade, the session low; the pair subsequently consolidated at 1.5701, edging down 0.20%.
Cable was likely to find support at 1.5585, Monday's low and resistance at 1.5828, the high of November 27.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index declined to 59.4 in November from a reading of 61.4 in October.
Buy Levels: 97.90 – 97.95
Sell Levels:98.35 – 98.45 Economic Indicators Date Time Data Prior Expected Impact
03.12.14
4.30 AM
Services PMI
56.2
56.6
Actual > Forecast = Good for currency
03.12.14
9.30 AM
Autumn Forecast Statement
4. 3rd Dec’14 Currency Highlights
JPYINR
Technical Outlook:
Prices have traded in sideways formation
where the daily range remained narrow.
Prices consolidated the down move
throughout the trading session.
For the day we expect the range bound
movement to continue as the momentum
indicator, RSI remained in 60-40 range on
hourly timeframe as well as on smaller
timeframe.
Fundamental News:
The dollar pushed higher against the yen on Tuesday, closing in on the seven year peaks hit in the previous session in the wake of a downgrade to Japan’s sovereign debt rating.
USD/JPY was up 0.23% to 118.66, not far from Monday’s highs of 119.13, the strongest level since August 2007.
The yen initially fell against the dollar on Monday before regaining some ground, after ratings agency Moody’s downgraded Japan's sovereign debt rating by one notch to A1
Buy Levels: 52.55 – 52.60
Sell Levels: 53.05 – 53.10 Economic Indicators Date Time Data Prior Expected Impact
03.12.14
No Data For JPY Today
6. 3rd Dec’14 Currency Highlights
Disclaimer
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