Forex Report : 22nd August 2018

Insignia Consultants

New Delhi

Wednesday, August 22, 2018

TIME: 9:56 am IST             

DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS

(inter-bank prices below)

Trump and his political issues will result in more losses for the US dollar. FOMC minutes tonight will be the key. If the US dollar weakens tomorrow, then there it mark the beginning of short US dollar positions. You guessed it right, the current US dollar weakness is just due to closure of long positions and nothing else.

India

India is closed today. If the US dollar weakens tonight, then rupee will open below 69.40 against the US dollar tomorrow.
Euro/US dollar (euro/usd CMP 1.1571):
One Support: 1.1505
One Resistance: 1.1647

o      Euro/usd can rise to 1.1607 and 1.1727 today as long as it trades over 1.1505.

o      A daily close over 1.1647 today will be very bullish for tomorrow.

UK Pound/US dollar (gbp/usd CMP 1.2907):
One Support: 1.2859
One Resistance: 1.3003

o      There will be a technical breakout over 1.2951 to 1.3003 and 1.3100.

o      Sellers will be there only below 1.2849.

o      A daily close over 1.3003 should result in 1.3175 by Friday.

US dollar/Japanese Yen (usd/jpy CMP 110.43):
One Support: 110.12
One Resistance: 110.79

o      Yen needs to trade over 110.12 to rise to 110.79 and 111.08.

o      Sell off will be there only below 110.12.

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.