Political uncertainty in Europe ahead of elections caused investors to sell the euro and seek safe-haven assets like gold. Stocks rose in Europe led by mining companies after positive earnings reports. Concerns over the French presidential election and uncertainty around further support for Greece weighed on the euro and boosted the dollar. Most Asian currencies weakened against the dollar due to falling Chinese foreign reserves and global political risks.

1. Currency Highlights
09th
Feb’2017
HighLights:
Political uncertainty ahead of European elections prompted nervous
investors to sell the euro and kept lower-rated euro zone debt under
pressure on Wednesday while the price of safe-haven gold hit three-
month highs.
Stocks rose in Europe, led by miners after Rio Tinto unveiled forecast-
beating profits and a bigger-than-expected dividend. months before
the final round of France's presidential election, investors are con-
cerned about the strong showing of far-right candidate Marine Le Pen,
who has promised to take France out of the euro zone and to hold a
referendum on European Union membership. Several other front run-
ners are in disarray.
French 10-year government bond yields FR10YT=TWEB , which move
inversely to price, dipped 1 basis point to 1.1 percent but held close to
17-month highs touched on Monday. Low-risk German equiva-
lents DE10YT=TWEB fell 2.3 bps to 0.34 percent.
The dollar, whose predicted path higher has been interrupted lately by uncertainty over U.S. President Donald Trump's eco-
nomic policies, rose 0.2 percent against a basket of other major currencies .DXY .
"The French political noise has brought the euro down and that has given the dollar a reprieve," said Gavin Friend, a strategist
with National Australia Bank in London.
The euro fell another third of a percent against the dollar on Wednesday, as concerns around a resurgence in political risk to
the single currency project drove its worst run of daily losses in almost two months
The yen, however, was up another quarter of a percent at 112.12 per dollar, a move towards the perceived security of Japan
pointing to the growth in concerns around global political risks and the Trump presidency that has dominated recent days.
The dollar was wobbling at the start of this week, a low wages number having quashed bets on a rise in U.S. interest rates in
March and cooled expectations for the scale of monetary tightening this year.
Concerns over the impact on the world economy of President Trump's protectionism and immigration policy have also
weighed on the greenback, along with the new administration's hints that it would prefer a weaker dollar.
Over the last two days, however, that has all played second fiddle to France's presidential election race and question marks
over further international financial support for Greece. The dollar index had its best day in a month on Tuesday and it was up
another 0.3 percent in early deals in Europe on Wednesday.
Both the dollar and yen have drawn some support from a return of nerves around China's yuan following the new year holi-
day. Beijing's foreign exchange reserves unexpectedly fell below the $3-trillion level last month for the first time in nearly six
years.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 100.57 100.39 0.18 0.18
USD/INR(Spot) 67.19 67.35 (0.16) (0.24)
USD/INR(NseFeb) 67.34 67.54 (0.20) (0.30)
EUR/INR(Spot) 71.53 71.93 (0.40) (0.56)
EUR/INR(NseFeb) 71.77 72.11 (0.34) (0.47)
GBP/INR(Spot) 83.86 84.20 (0.34) (0.41)
GBP/INR(NseFeb) 84.11 83.56 0.55 0.65
JPY/INR(NseFeb) 60.00 60.11 (0.11) (0.18)
MarketHighlights

2. Technical View:
On the hourly chart, the pair has given the breakdown of
its rising trend line at 60 levels.
The pair has been trading in horizontal channel pattern
from past few weeks and price has faced the resistance
of its upper band at 60.50 levels on the hourly chart.
Moreover, prices have been trading below its 21 DSMA
which gives the sign of bearishness in the prices.
On daily chart momentum indicator, RSI is trading below
60 levels which indicate downside momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover which suggests lack of strength in the
prices on the hourly chart.
So for trading perspective, one can JPYINR sell in the
range of 60.20 with SL of 60.50 for the target of 59.60
levels.
Pivot levels for the Day
Technical View:
The pair has given the breakdown of its horizontal chan-
nel pattern and prices have been retested its breakdown
trend line channel pattern at 68 levels on 4 hourly
charts.
On the hourly chart, the pair has given the breakdown
of its rising trend line at 68.20 levels.
Moreover, prices have been trading below its 21 HSMA
which gives the sign of bearishness in the prices.
A momentum indicator RSI has shown bearish range
shift at 45 levels, which suggest further negative mo-
mentum can be seen in the prices.
In addition, momentum indicator MACD has shown neg-
ative crossover and moving above its signal line on 4
hourly chart.
So for trading perspective, one can sell USDINR in range
67.45 with SL of 67.65 for the target of 67.
Currency Highlights
09th
Feb’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.02 67.21 67.27 67.40 67.46 67.59 67.78
JPYINR 59.60 59.84 59.92 60.08 60.16 60.32 60.56

3. Pivot levels for the Day
Currency Highlights
09th
Feb’2017
GBPINR EURINR
Technical View:
The pair has given the breakdown of its rising channel
pattern and price have been almost retested its break-
down channel pattern at 85.50 levels on the daily chart.
The pair has been trading below its 21 HSMA on the
hourly chart, which suggests further weakness can be
seen in the prices.
On daily chart momentum oscillator, RSI has been mov-
ing below 50 levels on the hourly chart, which suggest
bearishness in the prices.
A momentum indicator MACD has shown negative
crossover on the hourly chart, which supports our bear-
ish view to the prices.
For now, we can expect prices should move lower to-
wards 71.10 levels in the coming trading session.
Technical View:
The pair has given the breakdown of its rising channel
pattern and price have been almost retested its break-
down channel pattern at 85.50 levels on the daily chart.
The prices have given the breakdown of its horizontal
trend line at 86 levels on the daily chart.
Moreover, prices have been trading below 21 DSMA,
which suggest short term trend looks down.
Moreover, momentum indicator MACD has given nega-
tive crossover on a daily chart, which gives the sign of
bearishness in the prices.
The momentum indicator RSI has been trading below
60 levels on the daily chart, which suggest the possibili-
ties of further downside momentum in the prices.
For now, we expect prices should move lower to-
wards 83.30 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 83.51 83.87 83.99 84.23 84.35 84.59 84.95
EURINR 71.03 71.47 71.62 71.91 72.06 72.35 72.79

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
09th
Feb’2017
Economic Indicators
Date Time Data Prior Expected Impact
09.02.17 07:00 PM Unemployment Claims 246K 249K Actual < Forecast = Good for
currency; USDINR
09.02.17 08:30 PM Final Wholesale Inventories m/
m
1.0% 1.0% Actual < Forecast = Good for
currency; USDINR

5. Currency Highlights
09th
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: 2017.02.08 22:29:27 +05'30'