Monday 25 February 2019

Currency Report for Exporters and Importers : 25th February 2019





Insignia Consultants
New Delhi
Monday, February 25, 2019
TIME: 9:24 am IST
         
DAILY FOREX REPORT FOR EXPORTERS AND IMPORTERS
(inter-bank prices below)
It is a big US economic data week. Federal Reserve chief testimony among others can affect the US dollar as well. The recent wider trading range will be broken in euro/usd, gbp/usd and usd/jpy. A new range should be formed in these currencies.

India
I do not see big gains for the rupee against the US dollar over the next few months. The reason is that all political parties are making big promises for the masses. These promises will burden government finances and also burden the middle class tax payers. Additional cess (in everything) has been a hidden form of tax which has been used by everything government to loot the people of India. There will be some of additional cess on goods of mass usage once a new government is formed. Lack of adherence to fiscal management will prevent short term hot money to flow into India. Only a crash in US dollar Index will result in gains for the rupee.
US dollar-Indian Rupee (usd/inr CMP 71.0350):
One Support: 70.9250
One Resistance: 71.0825
o      100 day moving average at 71.1450 is the key short term resistance.
o      Usd/inr needs to break and trade over 71.1450 to rise to 71.5675.
o      Crash will be there below 70.9250 or in case 71.1450 is not broken by tomorrow.
Euro/US dollar (euro/usd CMP 1.1340):
One Support: 1.1313
One Resistance: 1.1394
o      100 day moving average is at 1.1394.
o      A break of 1.1394 will result in 1.1441 and 1.1516.
o      Small sell off will be there below 1.1313 and crash below 1.1279 this week.
UK Pound/US dollar (gbp/usd CMP 1.3070):
One Support: 1.3006
One Resistance: 1.3197
o      Cable can rise to 1.3197 and 1.3300 in the short term as long as it trades over 1.3006.
o      Bearish trend will be there if cable trades below 1.3006.
US dollar/Japanese Yen (usd/jpy CMP 110.65):
One Support: 110.41
One Resistance: 110.97-111.27
o      100 week moving average at 110.79 is the key resistance.
o      Yen needs to trade over 110.79 to rise to 111.28 (100 day MA).
o      Yen will break free from 110-111.50 wider trading range and form a new range anytime soon.
US dollar/Indonesia Rupiah (usd/idr CMP 14017.50):
One Support: 14979.60
One Resistance: 14081.70
o      Rupiah can fall to 13979 and 14955 today as long as it trades below 14081.70.
o      A daily close below 13979.60 for three consecutive days will result in 13882.50 in the short term.
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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