Forex Trading - Rupee ended at 71.49 a dollar yesterday

Rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar in yesterday's session tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of Coronavirus. 

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Most Asian currencies declined after the United States Federal Reserve kept its key policy rates steady, moreover, market participants are also assessing the economic implications of the Coronavirus outbreak and awaiting cues from the Union Budget.

Forex Trading News

  • Rupee ended at 71.49 a dollar yesterday, down 22 paise against its previous close of 71.24.
  • FBIL set reference rate for dollar at 71.1875 and euro at 78.4221.
  • Global Funds Sell Net INR9.62b of India Stocks on Thursday: NSE; Foreigners Buy Net INR26.3B of India Equity Derivatives Thursday.
  • Yield on 6.45% bonds maturing July 2029 at 6.56% on Jan. 30.
  • In economic news, domestic GDP annual estimate, fiscal deficit and eight core data are due for the day.
  • US dollar fell following weak data showing its slowest annual growth in three years in 2019.
  • US jobless claims released yesterday fell slightly.
  • BoE came in with its interest rate decision; maintained its status quo.
  • On the data front, UK's consumer confidence climbed to an 16-month high.
  • Japan’s yen headed for its first back-to-back weekly gain in two months on haven demand spurred by concern over the spread of the coronavirus.
  • The Chinese government has extended the region’s Lunar holiday till Feb 02 from Jan 30.
  • Data released showed NBS China services PMI beat forecasts.

Forex Trading - USDINR Fundamentals & Technical 

USDINR opened on a flat note but buying led USDINR upwards to end in the green. USDINR closed at 71.68 with a gain of 0.29 %.

On the daily chart USDINR has formed a sizable bullish candle forming higher High-Low formation compare to previous session indicating positive bias. USDINR is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. Currently USDINR is sustaining above its 20 and 50 day SMA which support bullish sentiments in near term.

The chart pattern suggests that if USDINR crosses and sustains above 71.70 level it would witness buying which would lead USDINR towards 71.90- 72.20 levels. However if USDINR breaks below 71.50 level it would witness selling which would take USDINR towards 71.20-70.90.

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