Published on 14/07/2017 11:46:05 AM | Source: Kedia Commodity Ltd

JPYINR trading range for the day is 57-57.3 - Kedia Commodity

Posted in Currency Report | #Kedia Commodity Ltd #Currency Tips


USDINR Trading Ideas for the Day

* USDINR trading range for the day is 64.39-64.66.

* Rupee gained after the consumer inflation rate eased to its lowest in five years, cementing hopes for a cut in interest rates in August.

* India's industrial output grew 1.7 percent in May from a year earlier, government data showed.

* The consumer price index (CPI) figures showed India's retail inflation slipped to a record low of 1.54% in June.

* SELL USDINR JUL 2017 @ 64.60 SL 64.85 TGT 64.48-64.30.

 

Market Snapshot

Rupee gained after the consumer inflation rate eased to its lowest in five years, cementing hopes for a cut in interest rates in August. Meanwhile, dollar dropped to one-week low against its major peers as investors turned sceptical regarding the Federal Reserve's rate hike plans after dovish comments from Fed Chair Janet Yellen at the testimony before the House Financial Services Committee. India's annual retail inflation rate eased to 1.54 percent in June, its slowest pace in more than five years. The inflation data is raising hopes the Reserve Bank of India could cut interest rates by 25 basis points (BPS) at its next policy review on Aug 1-2. India's industrial production grew at a slower pace in May, the Central Statistics Office said. Industrial output grew 1.7 percent on a yearly basis after expanding revised 2.8 percent in April. The annual growth came in line with expectations. Electricity production advanced 8.7 percent and manufacturing output rose moderately by 1.2 percent. Meanwhile, mining output fell 0.9 percent in May. During April to May period, industrial production climbed 2.3 percent from the same period of previous year. Technically market is under fresh selling as market has witnessed gain in open interest by 4.19% to settled at 992895, now USDINR is getting support at 64.42 and below same could see a test of 64.3675 level, And resistance is now likely to be seen at 64.5525, a move above could see prices testing 64.6325.

 

EURINR Trading Ideas for the Day

* EURINR trading range for the day is 73.14-74.18.

* Euro remained under pressure after Fed Chair Janet Yellen sounded cautious on inflation.

* Speculation seen that the European Central Bank is moving closer to scaling back its ultra-loose monetary policy.

* Spain's inflation eased to the lowest level in seven months in June as initially estimated, final data from the statistical office INE showed.

* SELL EURINR JUL 2017 @ 73.70 SL 73.98 TGT 73.56-73.20.

 

Market Snapshot

Euro remained under pressure after Fed Chair Janet Yellen sounded cautious on inflation and noted the federal-funds rate don't have to rise all that much further to get to a neutral policy stance. Spain's inflation eased to the lowest level in seven months in June as initially estimated, final data from the statistical office INE showed. Inflation slowed to 1.5 percent in June, the lowest since November, from 1.9 percent in May. The rate came in line with the flash estimate published on June 29. On a monthly basis, consumer prices remained flat in June, as estimated, after falling 0.1 percent in May. France's inflation slowed as estimated in June, final results from the statistical office Insee showed. Consumer prices advanced 0.7 percent on a yearly basis, following a 0.8 percent rise in May. Food prices grew 0.8 percent and cost of services advanced 0.9 percent. Month-on-month, consumer prices remained stable for the second consecutive month in June. Both monthly and annual rates came in line with the preliminary estimate published on June 30. In testimony before Congress, Yellen said the economy is on a strong enough footing for the Fed to raise rates and begin winding down its massive bond portfolio. She also emphasized that inflation is below target and noted that it is a particular “uncertainty” that could affect monetary policy. Technically now EURINR is getting support at 73.4225 and below same could see a test of 73.18 level, And resistance is now likely to be seen at 73.9425, a move above could see prices testing 74.22.

 

GBPINR Trading Ideas for the Day

* GBPINR trading range for the day is 83.03-83.85.

* GBP gains as support seen after official figures showed the unemployment rate in the period between March and May fell to its lowest since 1975 at 4.5 percent.

* British workers saw their pay and bonus growth fall further behind inflation in the three months to end-May, data showed.

* BOE is watching wage growth closely as it gauges whether the increase in inflation is creating longer-lasting pressure on prices.

* BUY GBPINR JUL 2017 @ 83.50 SL 83.28 TGT 83.72-83.90.

 

Market Snapshot

GBP gains as support seen after official figures showed the unemployment rate in the period between March and May fell to its lowest since 1975 at 4.5 percent. British workers saw their pay and bonus growth fall further behind inflation in the three months to end-May, data showed, but the jobless rate hit a 42-year low. The reports will complicate the debate among Bank of England officials over the need for higher interest rates. The number of people in work rose by 175,000 in the three months to May, taking the employment rate to a record high of 74.9 percent, the ONS said. But lacklustre wage growth showed the challenge facing Prime Minister Theresa May and her minority government, with growing signs that households are feeling the strain of rising prices since last year's Brexit vote. The Office for National Statistics said pay including bonuses, adjusted for inflation, fell 0.7 percent in the three months to May compared with a year earlier -- the sharpest drop since mid-2014. Inflation hit an almost four-year high of 2.9 percent in May, official data showed last month, a bigger increase than had expected. After BoE Deputy Governor Ben Broadbent signalled his reluctance to raise interest rates in an interview, the latest figures broadly confirmed policymakers' existing views of the labour market. The Bank of England is watching wage growth closely as it gauges whether the increase in inflation is creating longer-lasting pressure on prices. Technically now GBPINR is getting support at 83.1575 and below same could see a test of 82.9875 level, And resistance is now likely to be seen at 83.57, a move above could see prices testing 83.8125.

 

JPYINR Trading Ideas for the Day

* JPYINR trading range for the day is 57-57.3.

* JPY traded with gains as dollar weakened after FED’s Yellen suggested the Fed will hold the course on monetary policy and political concerns in the U.S. continued

* BOJ’s Kuroda reiterated the central bank's resolve to maintain its massive stimulus program until inflation is stably above its 2 percent target.

* Japan's economy is expected to continue expanding moderately ahead," Kuroda said.

* SELL JPYINR JUL 2017 @ 57.00 SL 57.20 TGT 56.72-56.56.

 

Market Snapshot

JPY traded with gains as dollar weakened after US Federal Reserve Chair Janet Yellen suggested the Fed will hold the course on monetary policy and political concerns in the U.S. continued. In testimony to the House Financial Services Committee Yellen kept a generally dovish stance, sending bond yields and the dollar down and giving a lift to Asian markets. She said the Fed would continue to cut its balance sheet and that interest rates would continue to rise but without clear timelines. She emphasized that there is uncertainty around the economic outlook for the world's largest economy. Bank of Japan Governor Haruhiko Kuroda reiterated the central bank's resolve to maintain its massive stimulus program until inflation is stably above its 2 percent target. He also said inflation is likely to gradually accelerate towards 2 percent reflecting improvements in the economy. "Japan's economy is expected to continue expanding moderately ahead," Kuroda said in a speech at a quarterly meeting of the central bank's regional branch managers. After three years of heavy asset buying failed to drive up inflation, the BOJ revamped its policy framework last year to one capping long-term interest rates from that targeting the pace of money printing. Japan's tertiary industry activity dropped in May after recovering in April, data from the Ministry of Economy, Trade and Industry showed. Technically now JPYINR is getting support at 56.9725 and below same could see a test of 56.9525 level, And resistance is now likely to be seen at 57.12, a move above could see prices testing 57.2475.

 

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