Federal Reserve chairman’s testimony indicating a quicker than expected interest rate rise resulted in mild gains for the US dollar. Incoming US economic numbers till October will be the key. They need to be higher and also beat street expectations for the US dollar to gain.
Emerging markets like India are prepared for a shift to higher interest rates in USA and other developed nations. Economic fundamentals and growth potential of every nation will dictate the trend of currencies for the rest of the year.
Unconfirmed reports suggest that state run bank have been buying US dollars to meet demand for some defence company. Further the reserve bank of India will be uncomfortable if the rupee weakens sharply in the near term. RBI will continue to intervene in the Indian forex markets.
Usd/inr July 2014: It needs to break and trade over 60.42 for 60.62-60.86. Initial support is at 60.12 and 59.96.
Euro/inr July 2014: It fall to 81.65 and 81.20 as long as it trades below 82.05. Only a break of 82.05 will result in further rise.
Gbp/Inr July 2014: Cable needs to trade over 103.24 to rise to 103.76-104.10. There will be sellers only below 103.24 to 103.07-102.82.
Jpy/Inr July 2014: Yen/inr needs to break and trade over 59.52 for 59.76-60.12. Initial support is at 59.2750 and there will be sellers only below 59.2750.
Emerging markets like India are prepared for a shift to higher interest rates in USA and other developed nations. Economic fundamentals and growth potential of every nation will dictate the trend of currencies for the rest of the year.
Unconfirmed reports suggest that state run bank have been buying US dollars to meet demand for some defence company. Further the reserve bank of India will be uncomfortable if the rupee weakens sharply in the near term. RBI will continue to intervene in the Indian forex markets.
Usd/inr July 2014: It needs to break and trade over 60.42 for 60.62-60.86. Initial support is at 60.12 and 59.96.
Euro/inr July 2014: It fall to 81.65 and 81.20 as long as it trades below 82.05. Only a break of 82.05 will result in further rise.
Gbp/Inr July 2014: Cable needs to trade over 103.24 to rise to 103.76-104.10. There will be sellers only below 103.24 to 103.07-102.82.
Jpy/Inr July 2014: Yen/inr needs to break and trade over 59.52 for 59.76-60.12. Initial support is at 59.2750 and there will be sellers only below 59.2750.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.