MENU

Published on 8/07/2020 12:25:09 PM | Source: HDFC Securities Ltd

Rupee could open flat following stable Asian currencies - HDFC Securities

Posted in Currency Report| #HDFC Securities #Currency Tips

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel  https://t.me/InvestmentGuruIndia 

Download Telegram App before Joining the Channel

Rupee could open flat following stable Asian currencies   - HDFC Securities 

The Indian rupee’s recent gains are likely to prove short-lived and the currency is set to fall back to the level of 75. The increase in Covid19 cases, higher gold prices and risk off tone dragged rupee lower on Tuesday, marking second daily loss. Sopot USDINR is having support around 74.30 and resistance at 75.20.

The offshore yuan briefly strengthened through the 7 per dollar level for the first time since March.

The global equity rally paused overnight after a strong start to the week, with European shares slipping alongside U.S. stock futures and Asian markets. The dollar snapped a five-day losing streak. The broader dollar has found support and is now consolidating after the sharp pullback since the end of quarter peak.

US Equities lost steam after the White House reiterated a call to cap the next round of COVID-19 stimulus at $1 trillion or less, after several Federal Reserve officials warned of challenges to the economy as infection rates soar across several states.

Bloomberg's Emerging Markets Capital Flow Proxy index provides a high-frequency read on inflows. The index plunged in March, and has since made up some lost ground. Extreme easing by major central banks has relieved some of the stress on emerging market funding. The index currently placed around 130 after touching low near 105 in March.

In the U.K., investors are looking ahead to today’s announcement of the government’s plans for the next stage of the country’s economic recovery from the pandemic, with hopes for further fiscal stimulus from Chancellor Rishi Sunak. 

 

USDINR July Futures :

* USDINR July futures formed bullish candlestick above doji candlestick pattern could be considered as short term reversal.

* Momentum oscillators and indicators rebounded from oversold zone suggesting some short covering bounce.

* The pair is expected to retrace up to 75.50 which is the previous bottom which will acts as resistance.

 

To Read Complete Report & Disclaimer Click Here

 

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795
SEBI Registration number is INZ000171337

 

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer