- The Indian rupee appreciated to a 4-month high against the US dollar on Wednesday due to selling of dollars by exporters and banks as well as sustained foreign fund inflows into the domestic market. - US job openings grew more than expected in July, while German and UK manufacturing production declined in the same month. - Japanese GDP grew 0.2% in the second quarter, while its current account surplus fell slightly in July. - Key economic indicators from Japan, China, the eurozone and US are expected on Thursday and could impact currency movements.

1. Currency Highlights
8th
Sep’2016
HighLights:
 Indian Rupee appreciated to 4 month high at 66.37 on Wednesday
 US JOLTS Job Openings grew to 5.78 million in the month of July
 German Industrial Produc on declined by 1.5 percent in July
 UK’s Manufacturing Produc on plunged by 0.9 percent in July
 Japan’s Final GDP grew by 0.2 percent for quarter ending in June
China’s Trade Balance was at a surplus of 346 billion Yuan in August with re‐
spect to surplus of 343 billion Yuan in July.
Indian Rupee con nued with its gains and appreciated around 15 paise to end
at 66.37 against the US dollar on Wednesday. The currency appreciated on
account of selling of dollars from exporters and banks. Further, sustained in‐
flow of foreign funds along with upbeat domes c market sen ments led to
posi ve movement in the currency. Foreign ins tu onal investors (FIIs) bought
$8.92 billion in local equity markets since March.
Addi onally, weakness in the dollar index due to low probability of Fed hiking the interest rates in September mee ng saw apprecia on in
the currency. Indian Rupee moved in the range of 66.32 to 66.39 in Wednesday’s trading session. The Reserve Bank of India (RBI) fixed ref‐
erence rate for the dollar was seen at 66.36 and Euro stood at 74.69 in Wednesday’s trade.
US Dollar Index rose by 0.14 percent in Wednesday’s trading session due to rise in risk aversion in global market sen ments which led to
increase in demand for the low yielding currency. However, favourable economic data from the country capped sharp gains in the curren‐
cy.
US Job Openings and Labor Turnover Summary (JOLTS) Job Openings grew to 5.78 million in July as against a rise of 5.64 million a month
ago.
Euro against dollar declined around 0.15 percent on Wednesday on account of strength in the dollar index. Further, weak global market
sen ments coupled with unfavourable economic data from the region con nued to keep pressure on the currency.
German Industrial Produc on declined by 1.5 percent in July as against a rise of 1.1 percent in June. French Trade Balance was at a deficit
of 4.5 billion Euros in July from a previous deficit of 3.5 billion Euros a month ago.
The Sterling Pound plunged around 0.8 percent in Wednesday’s trade as a result of strength in the dollar. Further, weak global market sen‐
ments along with unfavourable economic data from the country led to nega ve movement in the currency.
UK’s Halifax House Price Index (HPI) was at a deficit of 0.2 percent in August as against a drop of 1.1 percent in July. Manufacturing Produc‐
on plunged by 0.9 percent in July from a previous fall of 0.2 percent a month ago. Industrial Produc on unchanged at 0.1 percent in the
month of July.
The Japanese Yen against dollar appreciated around 0.3 percent in Wednesday’s trading session due to rise in risk aversion in global market
sen ments which led to increase in demand for the low yielding currency.
Japan’s Current Account was at a surplus of 1.45 trillion Yen in July as against a previous surplus of 1.65 trillion Yen in June. Final Gross Do‐
mes c Product (GDP) grew by 0.2 percent in June quarter.
SEBI Cer fied – Research Analyst Equi es I Commodi es I Currencies I Mutual Funds
Last Prev Cl. Price Chng Price Chng %
Dollar Index 94.95 94.76 0.19 0.20
USD/INR (Spot) 66.37 66.52 (0.15) (0.23)
USD/INR (Nse Sep) 66.57 66.73 (0.16) (0.24)
EUR/INR (Spot) 74.69 74.23 0.46 0.62
EUR/INR (Nse Sep) 74.94 74.59 0.35 0.47
GBP/INR (Spot) 88.63 88.79 (0.16) (0.18)
GBP/INR (Nse Sep) 89.04 89.00 0.04 0.04
JPY/INR (Nse Sep) 65.54 64.66 0.88 1.34
Market Highlights

2. Technical View:
On daily chart a er gap up opening JPYINR pair opened
the day at 65.52, made a high of 65.69, low of 65.47, and
closed the day at 65.63, thus it closed the day with gain
of 1.38 point.
On daily chart JPYINR has been facing strong resistance
at 66 levels which is unfiled gap and 21 DMA also. Be‐
side, pair has given closed below 21 & 50 day moving
averages which is place at 66.21, 65.44 level. & it show
that near term trend is down. On daily chart pair has
formed for day bullish candles ck pa ern with. Which
suggest some buying at lower level.
On daily chart momentum indicator RSI reading is at 48
levels which is also strong horizontal support now its
point out for posi ve breath in the pair.
So for trading perspec ve, one could use sell on Rise up‐
to level of 65.79 with SL of 66.60 for Target of 64.40‐
63.85
Pivot levels for the Day
Technical View:
On daily chart USDINR pair opened the day at 66.53,
made a high of 66.61, low of 66.52, and closed the day
at 66.58, thus it closed the day with a loss of 0.22 point.
Pair has given bearish breakout of head and shoulder.
On daily chart a er gap down pair have made small
white body candles ck pa ern. Which represent uncer‐
tainty, and other hand pair has been trading below all
short term, medium term, and long term moving aver‐
age which is 20, 100 and 200. Whereas on weekly chart
pair has closed below 20 & 50WMA. Which suggest
short term trend and medium term is bearish.
A weekly momentum indicator RSI reading is at 43 levels
with nega ve crossover, besides RSI reading is near to
its trend line and horizontal support which point out for
bounce back.
So for trading perspec ve, one could sell with SL of
67.20 for target of 66.30‐66.10
Currency Highlights
8th
Sep’2016
USDINR JPYINR
SEBI Cer fied – Research Analyst Equi es I Commodi es I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 66.39 66.48 66.54 66.57 66.63 66.66 66.75
JPYINR 65.14 65.36 65.46 65.58 65.68 65.80 66.02

3. Pivot levels for the Day
Currency Highlights
8th
Sep’2016
GBPINR EURINR
Technical View:
On daily A er gap up opening EURINR pair opened the
day at 74.79, made a high of 75.03, low of 74.76, and
closed the day at 74.92, thus it closed the day with a
gain of 0.43 point.
Price has have been trading in descending triangle
pa ern now price has taken support at 74.50 which is
200 DMA as well as lower band of descending triangle.
On other hand price has been trading below its 20, 100
daily moving average whereas took support at 50 daily
moving average which place at 74.48 which suggest
short term, medium term trend is down and long term
is bullish. On daily chart momentum oscillator RSI have
been trading at 46 level which is also strong horizontal
support now its point out for posi ve breath in the pair.
For now we can expect prices should move to towards
75.20‐ 75.30 levels in the coming trading session.
Technical View:
On daily GBPINR pair opened the day at 89.15, made a
high of 89.35, low of 88.97, and closed the day at 89.03,
thus it closed the day with a gain of 0.04 point.
The price has been trading in following channel for‐
ma on from past weeks and prices have been facing
resistance of its upper bad of channel at 89.25 levels.
The prices have been trading above its 20 DMA and 50
DAM with is at 88.12 and 88.74, that is suggest short
term trend is Bullish.
A momentum indicator MADC has given bullish Cross
over with posi ve note on daily chart, many more direc‐
onal indicator given buy signal which suggest bullish‐
ness in the prices in coming trading session.
For now we expect prices should move high towards
90.80 with SL 87.50 levels in the coming trading ses‐
sions.
SEBI Cer fied – Research Analyst Equi es I Commodi es I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 88.36 88.74 88.89 89.12 89.27 89.50 89.88
EURINR 74.38 74.65 74.80 74.92 75.07 75.19 75.46

4. Currency Highlights
SEBI Cer fied – Research Analyst Equi es I Commodi es I Currencies I Mutual Funds
8th
Sep’2016
Economic Indicators
Date Time Data Prior Expected Impact
08.09.16 5:20am Current Account 1.65T 1.59T Actual > Forecast = Good
for currency; JPYINR
08.09.16 8:30pm Crude Oil Inventories 2.3M 0.6M Actual < Forecast = Good
for Crude Oil
08.09.16 5:20am Final GDP q/q 0.0% 0.0% Actual > Forecast = Good
for currency; JPYINR
08.09.16 Tentative Trade Balance 343B 372B Actual > Forecast = Good
for Yuan
08.09.16 5:15pm Minimum Bid Rate 0.00% 0.00% Actual > Forecast = Good
for currency; EURINR
08.09.16 6:00pm ECB Press Conference
08.09.16 6:00pm Unemployment Claims 263K 264K Actual > Forecast = Good
for currency; USDINR

5. Currency Highlights
8th
Sep’2016
SEBI Cer fied – Research Analyst Equi es I Commodi es 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: 2016.09.08 08:56:29 +05'30'