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.
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