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Content - Angel Backoffice
Currencies Daily Report Friday| December 26, 2014 Content Overview US Dollar Euro GBP JPY Economic Indicators Overview: Research Team Anish Vyas Research Analyst [email protected] (022) 2921 2000 Extn :6104 Angel Broking Ltd. Registered Office: G-1, Ackruti Trade Centre, Rd. No. 7, MIDC, Andheri (E), Mumbai - 400 093. Corporate Office: 6th Floor, Ackruti Star, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 2921 2000 Currency: INE231279838 / MCX Currency Sebi Regn No: INE261279838 / Member ID: 10500 Disclaimer: The information and opinions contained in the document have been compiled from sources believed to be reliable. The company does not warrant its accuracy, completeness and correctness. The document is not, and should not be construed as an offer to sell or solicitation to buy any commodities. This document may not be reproduced, distri buted or published, in whole or in part, by any recipient hereof for any purpose without prior permission from “Angel Broking Ltd”. Your feedback is appreciated on [email protected] www.angelbroking.com Currencies Daily Report Friday| December 26, 2014 Highlights Japan’s Household Spending declined by 2.5 percent in last month. US Unemployment Claims fell to 280,000 for w/e on 19th Dec’14. Japan’s Prelim Industrial Production plunged by 0.6 percent in Nov. Asian markets are trading on a positive note today on the back of expectations that central bank of China will introduce more stimulus measures. US Dollar Index The US Dollar Index (DX) traded lower by 0.1 percent in the yesterday’s trade on the back of upbeat market sentiments led to decline in demand for the low yielding currency. However, favorable jobless claims data from the country cushioned sharp fall in the DX. The currency touched an intra-day low of 90.08 and closed at 90.22 on Wednesday. US Unemployment Claims declined by 9,000 to 280,000 for the week ending on 19th Dec’14 as against a rise of 289,000 in the prior week. Dollar/INR Market Highlights (% change) as on December 24, 2014 Prev. day WoW MoM YoY 8174.1 -1.1 1.8 -2.7 33.1 SENSEX 27208.6 -1.1 1.9 -3.1 48.8 DJIA 18030.2 0.0 3.9 1.1 9.4 S&P 2081.9 0.0 3.4 0.6 13.6 FTSE - - - - KOSPI 1946.6 -0.3 2.4 -1.8 -0.2 BOVESPA 58497.8 0.2 24.4 6.9 16.2 NIKKEI 14506.3 0.2 -0.1 -17.9 66.3 55.84 -2.2 -1.1 -24.2 -43.7 1182.90 0.8 -1.0 0.7 -1.8 15.73 0.5 -1.0 -4.9 -19.1 6312.25 -0.4 -0.9 -5.2 -13.4 102.89 -0.3 0.1 1.3 3.4 Last NIFTY Nymex Crude $/bbl Comex Gold $/oz Comex Silver $/oz LME Copper (3 month) -$/tonne G-Sec -10 yr @7.8% - Yield - Source: Reuters The Indian Rupee traded on a negative note and depreciated around 0.1 percent in yesterday’s trading session. The currency depreciated on the back of weak domestic market sentiments. Further, month end dollar demand from oil companies and its importers exerted downside pressure on the currency. Also, slow inflow of foreign funds in both debt and equities markets ahead of the Christmas season as investors prefer investing from New Year continued with negative movement in the currency. US Dollar (% change) as on December 24, 2014 Last Prev. day WoW MoM YoY Dollar Index 90.22 -0.1 1.0 2.9 13.6 US $ / INR (Spot) 63.52 -0.1 0.0 -2.6 -2.8 US $ / INR Dec’14 Futures (NSE) US $ / INR Dec’14 Futures (MCX-SX) 63.55 0.30 -0.4 2.60 2.78 63.55 0.29 -0.4 2.59 2.78 Source: Reuters However, sharp downside in the currency was capped due to selling of dollars by the foreign banks. Additionally, steady bond market scenario prevented sharp negative movement in the currency. The currency touched an intra-day low of 63.56 and closed at 63.52 on Wednesday. Technical Chart – USD/INR For the month of December 2014, FII inflows in equities totaled at Rs.2132.18 crores ($364.67 million) as on 24th December 2014. Year to date basis, net capital inflows stood at Rs.98151.62 crores ($16289.26 million) as on 24th December 2014. Outlook From the intra-day perspective, we expect Indian Rupee to trade on a mixed note on the back of upbeat market sentiments and selling of dollars by the foreign banks will act as a positive factor. Further, steady bond market scenario will support an upside in the currency. While on the other hand, strength in the DX along with dollar demand from importers will cap sharp upside or reversal in the currency. Source: Telequote Technical Outlook US Dollar/INR Dec’14 (NSE/MCX-SX) valid for December 26, 2014 Trend Support Resistance Up 63.40/63.20 63.75/63.90 www.angelbroking.com Currencies Daily Report Friday| December 26, 2014 Euro (% change) Euro/INR The Euro traded on a positive note and gained around 0.2 percent in the yesterday’s trade on the back of upbeat market sentiments in later part of the trade. Further, weakness in the DX supported an upside in the currency. The Euro touched an intra-day high of 1.222 and closed at 1.2193 on Wednesday. as on December 24, 2014 Last Prev. day WoW MoM YoY Euro /$ (Spot) 1.2193 0.2 -1.2 -2.8 -10.9 Euro / INR (Spot) Euro / INR Dec’14 Futures (NSE) Euro / INR Dec’14 Futures (MCX-SX) 77.44 -0.3 1.2 0.2 9.1 77.5 0.01 -2.5 0.78 -8.32 77.5 -0.02 -2.5 0.77 -8.35 Outlook Source: Reuters Technical Chart – Euro In today’s trade, the Euro is expected to trade on a mixed note on the back of upbeat market sentiments coupled with weakness in the DX will support an upside in the currency. While on the other hand, less volatility will be observed as European markets closed today on the eve of Boxing Day holiday. Technical Outlook valid for December 26, 2014 Trend Support Resistance Sideways 77.35/77.30 77.70/77.90 Euro/INR Dec’14 (NSE/MCX-SX) Source: Telequote GBP (% change) GBP/INR as on December 24, 2014 Last Prev. day WoW MoM YoY 1.5558 0.24 -0.1 -0.9 -5.0 The Sterling Pound trade on a positive note and surged around 0.24 percent in yesterday’s trading session on the back of weakness in the DX. $ / GBP (Spot) GBP / INR Dec’14 Futures (NSE) 98.78 0.23 1.75 1.75 16.85 Further, upbeat market sentiments in later part of the trade supported an upside in the Sterling Pound. The currency touched an intra-day high of 1.5564 and closed at 1.5558 on Wednesday. GBP / INR Dec’14 Futures (MCX-SX) 98.77 0.21 1.77 1.77 16.82 Source: Reuters Technical Chart – Sterling Pound Outlook In today’s trade, the Pound is expected to trade on a mixed note owing to upbeat market sentiments coupled with will support an upside in the currency. While on the other hand, less volatility will be observed as UK markets closed today on the eve of Boxing Day holiday. Technical Outlook GBP/INR Dec’14 (NSE/MCX-SX) valid for December 26, 2014 Trend Support Resistance Up 98.60/98.40 99.10/99.25 Source: Telequote www.angelbroking.com Currencies Daily Report Friday| December 26, 2014 JPY/INR JPY (% change) The Japanese Yen appreciated around 0.2 percent in the yesterday’s trade on the back of weak market sentiments in early part of the trade led to increase in demand for the low yielding currency. The Yen touched an intra-day high of 119.98 and closed at 120.48 on Wednesday. Japan’s Household Spending declined by 2.5 percent in November as against an earlier fall of 4 percent in October. Tokyo Core Consumer Price Index (CPI) was at 2.3 percent in December from 2.4 percent in November. Prelim Industrial Production plunged by 0.6 percent in November as compared to rise of 0.4 percent a month ago. Retail Sales was at 0.4 percent in November with respect to 1.4 percent in October. Average Cash Earnings slipped by 1.5 percent in November when compared to rise of 0.2 percent in prior month. as on December 24, 2014 JPY / $ (Spot) JPY 100 / INR Dec’14 Futures (NSE) JPY 100 / INR Dec’14 Futures (MCX-SX) Last Prev day WoW MoM YoY 120.48 -0.16 1.6 1.9 15.5 52.80 0.05 -3.18 0.73 -11.02 52.80 0.04 -3.23 0.69 -10.98 Source: Reuters Technical Chart – JPY Outlook We expect Japanese Yen to trade on a negative note today on the back of rise in risk appetite in market sentiments will lead to decline in demand for the low yielding currency. Technical Outlook JPY/INR Dec’14 (NSE/MCX-SX) Source: Telequote valid for December 26, 2014 Trend Support Resistance Sideways 52.70/52.55 52.95/53.10 Economic Indicators to be released on December 26, 2014 Indicator Country Time (IST) Actual Forecast Previous Impact Household Spending y/y Japan 5:00am -2.5% -3.5% -4.0% Medium Tokyo Core CPI y/y Japan 5:00am 2.3% 2.3% 2.4% Medium Prelim Industrial Production m/m Japan 5:20am -0.6% 1.0% 0.4% Medium Retail Sales y/y Japan 5:20am 0.4% 1.2% 1.4% Medium Average Cash Earnings y/y Japan 7:00am -1.5% 0.5% 0.2% Medium German Bank Holiday Euro All Day - - - - Italian Bank Holiday Euro All Day - - - - UK All Day - - - - Bank Holiday www.angelbroking.com