Published on 19/05/2017 11:36:02 AM | Source: Kedia Commodity Ltd
USDINR trading range for the day is 64.17-65.3 - Kedia Commodity
Rupee dropped sharply as uncertainties surrounding the actions of US president Donald Trump’s administration. Trump has been accused of trying to influence a federal probe including sharing terrorist information with Russia, casting doubts whether he could be above to focus on his pro-growth policies. Local stocks tanked nearly 1% on selling by FIIs as globally investors pulled out of emerging market stocks on growing fears that US President Donald Trump may be unable to kick-start the tax reforms he promised during election as he gets embroiled in one controversy after another. India's consumer inflation eased in April to its lowest in at least five years, reviving a debate on whether the Reserve Bank of India (RBI) should revisit policy easing even as most analysts expect it to hold rates for the time being. Consumer prices rose by an annual 2.99 percent, compared with March's 3.89 percent, data released by the Ministry of Statistics showed. Meanwhile, Indian government bond yield traded mixed as profit booking by local traders offset the impact of lower US Treasury yields on Indian bonds. Growth in India's dominant services industry came close to stalling in April as new orders slowed to a trickle, forcing companies to spend more on aggressive advertising campaigns as they fought for business, a private survey showed. Technically market is under short covering as market has witnessed drop in open interest by -9.77% to settled at 1025433 while prices up 0.69 rupees, now USDINR is getting support at 64.6 and below same could see a test of 64.1925 level, And resistance is now likely to be seen at 65.2075, a move above could see prices testing 65.4075
Trading Ideas for the Day
* USDINR trading range for the day is 64.17-65.38.
* Rupee dropped sharply as uncertainties surrounding the actions of US president Donald Trump’s administration.
* India's consumer inflation eased in April to its lowest in at least five years.
* Indian government bond yield traded mixed as profit booking by local traders offset the impact of lower US Treasury yields on Indian bonds.
Euro rallied as the dollar dropped as the U.S. political crisis appeared to deepen, and likely to delay any efforts by President Donald Trump to carry out his economic stimulus plans. The Justice Department appointed a former FBI director as special counsel to investigate possible collusion between President Donald Trump's 2016 campaign team and Russia. Unity among all EU countries was vital for ensuring a positive outcome of the exit negotiations with the United Kingdom, European Council President Donald Tusk said. "Our unity is the most important condition for the positive outcome of the negotiations," Tusk said in a European Parliament plenary session in Strasbourg. He was reporting the outcome of the first formal meeting of the European Council of 27 that took place on April 29. "What was - and remains - most important for me, is that our conduct in these talks will show the European Union at its best: in terms of unity, political solidarity and fairness towards the United Kingdom," Tusk said. Eurozone construction output declined in March after rebounding in the previous month, data published by Eurostat showed. Construction output dropped 1.1 percent in March from February, when it grew 5.5 percent. Building construction fell 1.7 percent on a monthly basis, in contrast to February's 5.1 percent increase. At the same time, growth in civil engineering eased to 1.1 percent from 7.1 percent.
Trading Ideas for the Day
* EURUSD trading range for the day is 1.1087-1.1126.
* Euro rallied as the U.S. political crisis appeared to deepen, and likely to delay any efforts by President Donald Trump to carry out his economic stimulus plans.
* EU's Tusk Says Unity Crucial For Positive Outcome Of Brexit Talks
* Eurozone construction output declined in March after rebounding in the previous month, data published by Eurostat showed.
GBP gained as doubts about U.S. President Donald Trump's political future weighed on the dollar. The dollar has weakened on reports that Donald Trump disclosed classified information to Russia's foreign minister and asked then-FBI Director James Comey to end his agency's investigation of former National Security Advisor Michael Flynn. Bullish investors, however, point to robust British consumer spending and growth over the past year and to the upward pressure that higher inflation may put on interest rates and the idea that Brexit risk is now largely priced in. The UK unemployment rate declined in the first quarter despite a slowdown in economic growth, while earnings growth remained weak amid rising inflation. The ILO jobless rate eased to 4.6 percent in the three months to March, the lowest since 1975, data from the Office for National Statistics showed. The rate dropped from 5.1 percent in the previous year and 4.7 percent in the three months to February. British household finances are experiencing the most severe strain since the middle of 2014, amid subdued pay growth and as living costs rose at the fastest pace in nearly three years, survey data from IHS Markit and Ipsos Mori showed. The IHS Markit Household Finance Index climbed to 42.4 from 42.5 in April. The average reading in the three months to May showed that the decline in household finances was the fastest since autumn 2014.
Trading Ideas for the Day
* GBPUSD trading range for the day is 1.2917-1.2977.
* GBP gained as doubts about U.S. President Donald Trump's political future weighed on the dollar.
* The UK unemployment rate declined in the first quarter despite a slowdown in economic growth, while earnings growth remained weak amid rising inflation.
* The IHS Markit Household Finance Index climbed to 42.4 from 42.5 in April.
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