Thursday, 23 August 2018

Currency Report for Exporters and Importers :23rd August 2018


Insignia Consultants
New Delhi
Thursday, August 23, 2018
TIME: 9:15 am IST          
DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS
(inter-bank prices below)
US dollar pared some of its weekly losses after FOMC minutes confirmed of two more interest rate hikes this year. There have been a lot of developments between the previous FOMC meet and now. Trump and his political problems, US-Turkey trade spat, US-China trade talks this week have been affecting currency markets. Fundamentally the US dollar should gain further. Other than fundamentals, all the other factors whenever they have the upper hand will result in sinking of the US dollar. US economic data release today include new home sales. Australian political turmoil will effect Asian currencies. Momentum is still bullish for the US dollar. Trend in currency markets can keep on changing every now and then till 10th September. Better to remain on the sidelines till Monday.

India
Month end factors will come into play. Spot value date is 27th August. There is demand at lower prices. Global factors will dictate rupee. Domestically, there is caution among short term traders and investors on the economy. Inflation will be cause of concern. The next seven days is very crucial for the rupee from a short term trend.

Euro/Indian Rupee (Euro/inr CMP 80.9225):
One Support: 80.6825
One Resistance: 81.1925
o      Only a break of 81.1925 will result in a rise to 81.4775 and 81.8575.
o      Sellers will be there only below 80.6825.
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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.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
NOTES TO THE ABOVE REPORT
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED
Indian Standard Time (IST): +5:30 GMT
Current Market Price (CMP)
All foreign exchange prices are for inter-bank rates.

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