Euro rose by 0.21%yesterday amidweak dollar and rise in risk appetite in the domesticmarket sentiments - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee appreciated yesterday supported by FII inflow sand positive domestic market sentiments along with weakness in dollar. Meanwhile,sharp gains were limited due to rise in crudeoil prices
• Rupee is likely to tradewith positive bias amid expectation of correction indollar andUS treasuryyields. Dollar is likely tomove southasUSnon-farmpayrollsdata isprojected toshowthat less number of jobs were created in the economy in December. Additionally,unemployment rate likely ticked upto 3.8% in December upfrom3.7%inNovember,signaling crack in labor market.Moreover, optimistic domestic market sentiments and persistent FII inflows wouldaidrupee.USDINRJanwill facehurdlenear83.40 levelsand slipbacktowards83.25levels.
Euro and Pound Outlook
• Euro rose by 0.21%yesterday amidweak dollar and rise in risk appetite in the domesticmarket sentiments. Further, euromoved higher as upward revision toEuroZone compositePMI dampened speculationforECBratecuts.Fortoday,EURUSDislikelytoholdthe support near 1.0900 level and rise towards 1.0980 levels amid expectationof correction indollar.Meanwhile, investorswill remain cautiousaheadofinflationdatafromeurozonetogetcuesoninterest rateoutlook. EURINRJanmayrisetowards91.70 level as longas it tradesabove91.10levels.
• Poundisexpectedtorisefurthertowards1.2750levelsonweakdollar andasdatashowedBritishborrowers increaseddemandfor loans. Additionally, survey showed activity in services sector grewmore strongly inDecember than initially though. GBPINR Jan is likely to movenorth towards106.25 level as longas it staysabove105.60 levels.
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