The performance of the bhartiya janta party (BJP) in the state elections bodes well for the Indian economy and Indian stock markets. Reforms have been started as diesel prices have been deregulated. Returns from investment in Indian stock markets will easily outpace returns from gold in India. Stability should result in more foreign inflows in India. Rupee (usd/inr) had already fallen in the non-deliverable forward market on Friday in anticipation of a BJP win. There is nothing much on the global front.
A former Egyptian minister has said that crude oil prices can fall to $60 in the near term. Lower crude prices will increases the chances of a delayed interest rate hike by the Federal Reserve next year which should be bullish for gold, emerging market currencies and emerging market stocks.
Hope and expectation of the people of India for a better life and higher income and higher jobs creation has increased multifold after yesterday’s state results. It is now upto to the NDA government at centre and states to perform beyond people’s expectation particularly in area of job creation.
We have s shortened trading week. Traders will be taking positions for next week as the week progresses. Trading volumes will fall this week.
Usd/inr October 2014 (expiry on 29th October): It needs to trade over 61.21 to rise to 61.52-61.86. There will be buyers between 60.80-61.10 zone. Only a fall below 60.80 will trigger a sell off.
Euro/inr October 2014 (expiry on 29th October): Back to square one as it needs to trade over 77.73 this week to rise to 79.00-79.76. There will be a technical break down only below 77.73 only.
Gbp/Inr October 2014 (expiry on 29th October): Resistance is at 99.02 and only a break of 99.02 will result in further rise to 99.42 and 99.96. Initial support is at 98.62 with 98.39 as the key support.
Jpy/Inr October 2014 (expiry on 29th October): Initial support is at 56.96. Yen/inr needs to trade over 56.96 to rise to 57.52-57.96. There will be sellers only below 56.96 today.
A former Egyptian minister has said that crude oil prices can fall to $60 in the near term. Lower crude prices will increases the chances of a delayed interest rate hike by the Federal Reserve next year which should be bullish for gold, emerging market currencies and emerging market stocks.
Hope and expectation of the people of India for a better life and higher income and higher jobs creation has increased multifold after yesterday’s state results. It is now upto to the NDA government at centre and states to perform beyond people’s expectation particularly in area of job creation.
We have s shortened trading week. Traders will be taking positions for next week as the week progresses. Trading volumes will fall this week.
Usd/inr October 2014 (expiry on 29th October): It needs to trade over 61.21 to rise to 61.52-61.86. There will be buyers between 60.80-61.10 zone. Only a fall below 60.80 will trigger a sell off.
Euro/inr October 2014 (expiry on 29th October): Back to square one as it needs to trade over 77.73 this week to rise to 79.00-79.76. There will be a technical break down only below 77.73 only.
Gbp/Inr October 2014 (expiry on 29th October): Resistance is at 99.02 and only a break of 99.02 will result in further rise to 99.42 and 99.96. Initial support is at 98.62 with 98.39 as the key support.
Jpy/Inr October 2014 (expiry on 29th October): Initial support is at 56.96. Yen/inr needs to trade over 56.96 to rise to 57.52-57.96. There will be sellers only below 56.96 today.
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Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.