SELL USDINR JUL @ 86.5 SL 86.65 TGT 86.35-86.25 - Kedia Advisory
USDINR
SELL USDINR JUL @ 86.5 SL 86.65 TGT 86.35-86.25.
Observations
USDINR trading range for the day is 86.31-86.57.
Rupee weakened as traders considered a dovish RBI and the pessimistic trade outlook with the US.
Consumer inflation fell to a six-year low of 2.1%, to test the lower bound of the RBI's inflation tolerance band of 2%.
For India, the prospects of a trade deal before the August 1 deadline have dimmed.
EURINR
SELL EURINR JUL @ 101.6 SL 102 TGT 101.3-101.
Observations
EURINR trading range for the day is 101.2-101.66.
Euro gains as optimism grew over a potential trade agreement between the US and EU following the announcement of a US-Japan deal.
Investor focus shifted to the deflationary fallout from potential U.S. trade duty increases and a strengthening euro.
Money markets are fully pricing in one 25-bp ECB rate cut by December , and around a 50% chance of that move coming in September.
GBPINR
SELL GBPINR JUL @ 117.3 SL 117.6 TGT 117-116.7.
Observations
GBPINR trading range for the day is 116.6-117.38.
GBP rose as risk appetite improved following a US-Japan trade deal.
Flash PMIs are expected to show the mildest manufacturing contraction in six months and the strongest services growth in nearly a year.
The UK posted a £20.7 billion budget deficit for June, marking the second-highest June figure since 1993.
JPYINR
SELL JPYINR JUL @ 59.2 SL 59.4 TGT 59-58.8.
Observations
JPYINR trading range for the day is 58.68-59.28.
JPY gains following news of a trade agreement between the US and Japan.
The deal, announced by President Donald Trump, includes a 15% tariff on Japanese exports to the US.
Political uncertainty deepened after the ruling coalition lost its majority in the upper house in weekend elections.
