The dollar weakened against other major currencies due to concerns over President Trump's immigration policies and weaker than expected US growth figures. Consumer inflation in the eurozone increased closer to the ECB's target. The yen rose against the dollar after the BOJ left rates unchanged and raised growth forecasts. Technical analyses provided buy and sell recommendations for currency pairs including USDINR and JPYINR based on chart patterns and momentum indicators. Upcoming economic indicators from major economies were also highlighted.

1. Currency Highlights
01st
Feb’2017
HighLights:
The dollar remained weaker against a basket of the other major cur-
rencies on Tuesday as concerns over the destabilizing impact of Presi-
dent Donald Trump’s immigration policy continued to generate risk
aversion.
Investors remained on edge following Trump’s executive order lim-
iting immigration from seven Muslim-majority countries which
sparked widespread protests in the U.S. and led to the firing of acting
Attorney General Sally Yates, after she told justice department lawyers
not to defend the order.
The dollar also remained on the defensive after Friday’s weaker-than-
expected figures on U.S. fourth quarter growth prompted speculation
that the Federal Reserve will avoid hiking interest rates too quickly.
Consumer price inflation (CPI) in the euro zone spiked in January to
nearly a four-year high, moving closer towards the European Central
Bank’s (ECB) 2% target, official preliminary data showed on Tuesday.
In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 1.8% in January compared to forecasts for an
increase of 1.6% and following a final reading of a 1.1% advance in the prior month.
The dollar weakened further as U.S. President Donald Trump on late Monday in the U.S. fired acting U.S. Attorney General Sal-
ly Yates after she ordered Justice Department lawyers not to enforce Trump's immigration ban, the White House spokesman
said on Twitter.
Trump has named Dana Boente, U.S. attorney for the Eastern District of Virginia, to replace Yates, White House spokesman
Sean Spicer said in a tweet.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, unexpectedly increased by a seasonally adjusted 0.9% in
January. That was in line with expectations and the prior month’s increase.
The Bank of Japan's monetary policy meeting this morning saw the central bank leaving interest rates and the bond purchases
unchanged at 80 trillion yen. The yen maintained the gains from yesterday as the markets await the press conference from BoJ
Governor, Kuroda.
In its statement, the BoJ was upbeat on the long-term inflation expectations and upgraded the nation's estimated sustainable
growth rate to "around 0.5%". The Japanese yen closed yesterday with 0.88% gains against the U.S. dollar on a risk off senti-
ment and is currently up 0.28%, only next to gold prices which are up 0.50% at the time of writing.
The yen rose against the dollar Tuesday as the BOJ left its monetary policy and raised its growth forecasts. The BoJ kept its ex-
cess reserves rate at minus -0.1%; 10-year bond yield target at close to zero.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 99.93 100.42 (0.49) (0.49)
USD/INR(Spot) 67.72 67.82 (0.10) (0.15)
USD/INR(NseFeb) 68.06 68.17 (0.11) (0.16)
EUR/INR(Spot) 72.86 72.55 0.31 0.43
EUR/INR(NseFeb) 72.96 72.95 0.01 0.01
GBP/INR(Spot) 84.58 84.62 (0.04) (0.05)
GBP/INR(NseFeb) 84.69 85.52 (0.83) (0.98)
JPY/INR(NseFeb) 59.81 59.50 0.31 0.52
MarketHighlights

2. Technical View:
On hourly chart, the pair has given breakdown of its
horizontal trend line at 60.20 levels.
The price has given breakdown of its rising trend line at
60 levels on hourly chart.
Moreover, prices have been trading below its 21 HSMA
which gives the sign of bearishness in the prices.
On daily chart momentum indicator RSI is trading below
40 levels which indicates down side momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover which suggest lack of strength in the
prices on hourly chart.
So for trading perspective, one could JPYINR sell in the
range of 59.90 with SL of 60.20 for target of 59.20 levels.
Pivot levels for the Day
Technical View:
The pair has been moving in its rising channel pattern
and prices have been hovering around of its lower band
of channel pattern at 68 levels on hourly chart.
The price has given breakout of its falling trend line at
68.05 levels on hourly chart.
Moreover, prices have been trading above its 21 HSMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has shown bullish range shift
at 50 levels, which suggest further positive momentum
can be seen in the prices.
In addition, momentum indicator MACD has shown
positive crossover and moving above its signal line on
hourly chart.
So for trading perspective, one could buy USDINR in
range 67.90 with SL of 67.70 for target of 68.30.
Currency Highlights
01st
Feb’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.77 67.92 67.99 68.07 68.14 68.22 68.37
JPYINR 59.17 59.52 59.66 59.87 60.01 60.22 60.57

3. Pivot levels for the Day
Currency Highlights
01st
Feb’2017
GBPINR EURINR
Technical View:
The price has taken support of its rising channel pattern
at 72.70 levels on hourly chart. The EURINR pair has
faced strong resistance of its horizontal trend line at
72.90 levels on hourly chart.
The pair has been trading below its 21 HSMA on hourly
chart, which suggest further weakness can be seen in
the prices.
On daily chart momentum oscillator RSI has been mov-
ing below 50 levels on hourly chart, which suggest
bearishness in the prices.
A momentum indicator MACD has shown negative
crossover on hourly chart, which support our bearish
view to the prices.
For now we can expect prices should move lower to-
wards 72.20 levels in the coming trading session.
Technical View:
The pair has been moving in its rising channel pattern
and prices have been taking support of its lower band
of channel pattern at 83.50 levels on daily chart.
The prices has given breakout of its horizontal trend line
at 84.60 levels on daily chart.
Moreover, prices have been trading above 50 DSMA,
which suggest short term trend looks up.
Moreover, momentum indicator MACD has given posi-
tive cross over on daily chart, which gives the sign of
bullishness in the prices.
The momentum indictor RSI has been trading above 60
levels on daily chart, which suggest the possibilities of
further upside momentum in the prices.
For now we expect prices should move higher towards
85.30 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 83.31 84.08 84.38 84.85 85.15 85.62 86.39
EURINR 72.52 72.72 72.84 72.92 73.04 73.12 73.32

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
01st
Feb’2017
Economic Indicators
Date Time Data Prior Expected Impact
01.02.17 06:30 AM Manufacturing PMI 51.4 51.2 Actual > Forecast = Good for
currency; CNY
01.02.17 03:00 PM Manufacturing PMI 56.1 55.9 Actual > Forecast = Good for
currency; GBPINR
01.02.17 06:45 PM ADP Non-Farm Employment
Change
153K 165K Actual > Forecast = Good for
currency; USDINR
01.02.17 08:30 PM ISM Manufacturing PMI 54.7 55 Actual > Forecast = Good for
currency; USDINR
01.02.17 09:00 PM Crude Oil Inventories 2.8M

5. Currency Highlights
01st
Feb’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: 2017.01.31 18:17:23 +05'30'