Wednesday, 24 October 2018

Currency Report for Exporters and Importers : 24th October 2018





Insignia Consultants
New Delhi
Wednesday, October 24, 2018
TIME: 09:17 am IST        
         
DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS
(inter-bank prices below)
European central bank meeting tomorrow will be the key for euro against the US dollar. Interest rate stance and growth outlook will be the key. Euro can rise on short covering. If euro/usd falls after the ECB meeting tomorrow, then chances of 1.2500 will be very high in the near. Cable will be volatile. Emerging market currencies can get the benefit of falling crude oil prices.

India
Falling global crude oil prices along with lack of negative news from the domestic front can result in more fall for usd/inr. I do not expect huge month end demand. Festival related NRI inflows will be very high.

US dollar-Indian Rupee (usd/inr CMP 73.2050):
One Support: 73.0725
One Resistance: 73.6325
o      Usd/inr can fall to 72.6475 by next week as long as it trades below 73.6325.
o      There will be another wave of rise only over 73.6325
Euro/US dollar (euro/usd CMP 1.1471):
One Support: 1.1433
One Resistance: 1.1529
o      Euro/usd needs to trade over 1.1380-1.1433 zone till 7th November to rise to 1.1629 and 1.1833.
o      Long term bearish trend will be there only below 1.1380.
o      Quick rise will be there over 1.1529 today.
US dollar/Indonesia Rupiah (usd/idr CMP 15187.00):
One Support: 15160.60
One Resistance: 15219.40
o      Rupiah can fall to 15127.60 today and 15065.20 by tomorrow as long as it trades below 15252.40.
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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