Tonight and tomorrow are big days for global financial markets due to FOMC meet and Scottish Independence vote. The NDA government has not been able to reduce the basic prices of fruits and vegetables. The one of the key reason for the losses of the Bhartiya Janata Party (BJP) in the various assembly elections. This is good for the people as well as the nation. NDA government will further ponder and ensure that basic cost of survival falls further. Big ticket policy announcements will be there after Diwali as the state elections are there on 15th October. Headline inflation can come down further due to higher base effect.
After the FOMC meet traders will be taking positions for the next quarter. Be prepared for big one way moves in the rupee. Imports in India will be high to meet festival demand in the next one month. In case the rupee weakens further (after the FOMC meet) tomorrow, importers will be forced to cover their short term payables. Financial year half yearly close will also increase intraday volatility.
Usd/inr September 2014: Failure to break and trade over 61.52 by Friday will result in a fall to 60.42 and 60.10. Initial support is at 60.96
Euro/inr September 2014: Initial support is at 79.06 and there will be sellers only below 79.06 today. Euro/inr needs to trade over 79.37 till Friday for another set of rise to 80.10 and 80.96.
Gbp/Inr September 2014: It needs to trade over 99.31 to rise to 99.7850 and 100.68. Initial support is at 99.19 and there will be sellers if cable trades below 99.19 in UK session.
Jpy/Inr September 2014: It needs to trade over 57.12 to rise to 57.36 and 57.76. Initial support is at 57.02 and there will be sellers only below 57.02.
After the FOMC meet traders will be taking positions for the next quarter. Be prepared for big one way moves in the rupee. Imports in India will be high to meet festival demand in the next one month. In case the rupee weakens further (after the FOMC meet) tomorrow, importers will be forced to cover their short term payables. Financial year half yearly close will also increase intraday volatility.
Usd/inr September 2014: Failure to break and trade over 61.52 by Friday will result in a fall to 60.42 and 60.10. Initial support is at 60.96
Euro/inr September 2014: Initial support is at 79.06 and there will be sellers only below 79.06 today. Euro/inr needs to trade over 79.37 till Friday for another set of rise to 80.10 and 80.96.
Gbp/Inr September 2014: It needs to trade over 99.31 to rise to 99.7850 and 100.68. Initial support is at 99.19 and there will be sellers if cable trades below 99.19 in UK session.
Jpy/Inr September 2014: It needs to trade over 57.12 to rise to 57.36 and 57.76. Initial support is at 57.02 and there will be sellers only below 57.02.
Recommended Content
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.