FUNDAMENTALS OF CURRENCY:
The dollar slumped in early European trade Friday, heading for its weakest month in 10 years, as traders fretted about the U.S. economic recovery due to the continued spread of the Covid-19 virus across the Midwest and the failure of U.S. lawmakers to agree a new round of stimulus measures. At 2:50 AM ET (0650 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.4% at 92.648, having fallen as low as 92.523, a new two-year low.
The Japanese yen continues to make impressive inroads on the dollar, with USD/JPY falling 0.45% to 107.25 this morning. That will likely add more gloom to the export-facing Nikkei, and after finally breaking 106.00 earlier this week, yen haven flows have been prevalent. USD/JPY’s downside technical target is around 102.00, with momentum remaining strong in the currency pair. We will almost certainly start getting “watching the currency closely” noise from the Bank of Japan as those levels approach.
The dollar index of major currencies sank another 0.50% to 92.99, taking out support at 93.20.That said, the EUR/USD and GBP/USD both outperformed once again. EUR/USD broke 1.1800 and closed at its highs at 1.1845. It has risen 0.30% in Asia, touching 1.1885 this morning, just shy of its initial 1.1900 targets. GBP/USD rose an impressive 0.80% to close at 1.3095. That is a series of multiple daily tops from early 2020 and is a formidable resistance
USDINR TECHNICAL CHART
Technical indicators (Daily):
* RSI- 40.9961
* MACD- -0.1886
* MOVING AVERAGES (20,50,100)- (75.3388/75.5676/75.4919)
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