There will be position squaring and rebuilding as markets open after a very long vacation. Globally there are growing concerns over the growth effects on Europe after Russian counter sanctions. The longer Europe imposes sanctions over Russia, the longer will be the slowdown effect on Europe as well. The euro/usd to me is highly overvalued. There are some indirect indication that euro/usd is being manipulated to prevent a fall so that euro investors do not panic. I expect zero interest rates in Eurozone to continue till end of next year and may be even beyond. Interest rate differentials between Eurozone and rest of the world will only widen as the year progresses.
On the domestic front, optimism over the performance of equity markets for the rest of the year can result in more gains for the rupee. Lower global crude oil prices will also aid the rupee. The NDA government is trying to change outdated laws and procedures. Indian industry is very happy over the same.
Usd/inr August 2014: Key support is at 60.51 and there will be another wave of selling only below 60.51 to 60.17 and 59.95. Overall usd/inr will find sellers on rise as long as it does not break 61.26.
Euro/inr August 2014: A fall below 81.05 will pave the way for 80.80 and 80.39. Overall euro/inr is bearish as long as it trades below 81.56.
Gbp/Inr August 2014: Key support is at 101.59 and there will be sellers below 101.59 to 101.19 and 100.92. Only a break of 101.96 will resume the bullish trend.
Jpy/Inr August 2014: There will be a technical break down below 59.06 to 58.75 and 58.37. Only a break of 59.42 will resume the intraday bullish zone.
On the domestic front, optimism over the performance of equity markets for the rest of the year can result in more gains for the rupee. Lower global crude oil prices will also aid the rupee. The NDA government is trying to change outdated laws and procedures. Indian industry is very happy over the same.
Usd/inr August 2014: Key support is at 60.51 and there will be another wave of selling only below 60.51 to 60.17 and 59.95. Overall usd/inr will find sellers on rise as long as it does not break 61.26.
Euro/inr August 2014: A fall below 81.05 will pave the way for 80.80 and 80.39. Overall euro/inr is bearish as long as it trades below 81.56.
Gbp/Inr August 2014: Key support is at 101.59 and there will be sellers below 101.59 to 101.19 and 100.92. Only a break of 101.96 will resume the bullish trend.
Jpy/Inr August 2014: There will be a technical break down below 59.06 to 58.75 and 58.37. Only a break of 59.42 will resume the intraday bullish zone.
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