Friday, 17 August 2018

Currency Report for Exporters and Importers :17th August 2018


DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS
(inter-bank prices below)
Momentum is still very bullish for the US dollar. Only profit booking on long US dollar positions will result in weakness. Economic factors are not affecting currency markets as focus is on political factors. Turkey not resorting to capital controls is a positive sign. There is hope that US-China talks will end the trade war with China. Nothing is clear at the moment. Volatility will rise.

India
Trading volumes will be thin as Mumbai is closed due to “Parsi New Year”.  Global factors will dictate more than domestic factors.
Euro/Indian Rupee (Euro/inr CMP 79.7600):
One Support: 79.4325
One Resistance: 79.9450
o      Euro/inr can rise to 80.2250 as long as it trades over 79.4325
o      Sellers will be there only below 79.4325.
US dollar/Indonesia Rupiah (usd/idr CMP 14593.30):
One Support: 15458.10
One Resistance: 14628.30
o      Small sell off will be there below 14573.60 with 14548.10 as crash point.
o      Rupiah needs to trade over 14628 to rise further.
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FAQ
Why Do I ask exporters and importers to use trailing stop loss? Some day’s currency markets are very volatile. Trend (short term as well as medium term) change at the flick of coin without any advance warning. In order to make the most of the volatility it is preferable to use trailing stop loss using technical analysis as basis. Those exporters and importers do not wish to take the risk, should take a forward cover or hedge in future and options market if export or import price near cost.

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