Buy USDINR Jan @ 85.85 SL 85.75 TGT 85.9-86.05 - Kedia Advisory
USDINR
Observations
USDINR trading range for the day is 85.58-86.06.
Rupee settled flat amid account of slowing growth and a wider merchandise trade deficit.
Dollar-rupee forward premiums retreated, with the 1-year implied yield down 4 bps at 2.50%
India's July-September current account deficit narrowed marginally from a year earlier amid a rise in services exports
BUY USDINR JAN @ 85.85 SL 85.75 TGT 85.9-86.05.
EURINR
Observations
EURINR trading range for the day is 88.89-89.33.
Euro remained in range as Spanish inflation data fueled expectations of gradual ECB rate cuts.
Spain’s consumer prices rose 2.8% year-on-year in December, up from 2.4% in November.
ECB does not need to keep interest rates at a restrictive level, which curbs the economy, when inflation momentum is at 2%
SELL EURINR JAN @ 89.2 SL 89.4 TGT 89-88.8.
GBPINR
Observations
GBPINR trading range for the day is 107.14-107.98.
GBP came under pressure as traders slightly increased their dovish bets on the BOE’s policy stance in 2025.
Market expectations now reflect a 53 bps interest rate reduction, up from the 46 bps projected.
Fed signaled a more cautious outlook for additional rate cuts in 2025, marking a shift in its monetary policy stance.
SELL GBPINR JAN @ 107.6 SL 107.9 TGT 107.3-107.
JPYINR
Observations
JPYINR trading range for the day is 54.8-54.96.
JPY rose as investors continued to assess the Bank of Japan's interest rate outlook
Finance Minister Katsunobu Kato reiterated concerns over the declining yen and warned against excessive currency fluctuations.
BOJ policymakers discussed the possibility of raising interest rates in the near future, with some arguing that conditions were ripe for such a move.
SELL JPYINR JAN @ 54.9 SL 55.1 TGT 54.7-54.5.
