Trump impeachment trial begins with a debate over rules and procedures

The impeachment trial of President Trump has begun in the Republican controlled Senate. Democrats are not happy with the rules set for the impeachment trial. The trial is expected to be over by the middle of next week and President Trump is unlikely to be impeached by the Senate. The Coronavirus from China has caused some nervousness in equity markets in Asia bringing back memories of similar fall in equities during the outbreak of SARS virus. The Yuan has recovered this morning after touching lows of 6.92 against the US Dollar. Exporter selling interest is seen above 6.90. The rupee is likely to trade sideways as we approach the budget. 71.45-71.70 gap zone would be a crucial resistance. Likely range for today 71.10-71.45. Overall global risk sentiment is positive. S&P futures are currently trading at record highs. Euro is unable to move higher despite a beat on German ZEW data yesterday. 1.1050 is a crucial support for the Euro break of which could open room for further downside.

Strategy: Exporters are advised to hold for covering short term exposures. Importers were advised last week to cover on dips towards 70.70 levels. The 3M range for USDINR is 70.00 - 72.50 and the 6M range is 69.50 - 73.50.

Note: The above outlook is based on IFA Global Research Academy Proprietary ("IFA Dollar - Rupee Sentiment Index") based on various techno-fundamental factors relevant to the particular outlook horizon. The index weights have been arrived at after rigorous back testing. The factors which are considered for computation of barometers includes pre-defined and back tested weightage given to fundamental factors such as economic data, FII flows, Global equity markets, Government & RBI activity, Onshore-offshore activity, other peer currency performance and other macro economic factors. Further, this module also considers factors such as major MPC member's speech, meeting or summit. On the technical front, factors include indicators and oscillators such as RSI, stochastic, combination of moving averages and other basic & advance technical studies.

• UK government suffers fourth defeat on Brexit legislation

• Hongkong leads Asia stocks down, while coronavirus spooks markets

• Oil declines as market surplus forecast counters Libya worries

• Govt approves raising FDI in Bharti Airtel to 100% from 49% allowed earlier

• Eurozone corporate loan demand slides for first time in six years

Download The Full Daily Market Report