R EE E K L Y P O R T
23 DEC - 27 DEC 2013
Buy on fear, sell on greed.
Buy on the rumor, sell on the news.
The trend is your friend.
Amateurs want to be right.
Professionals want to make money.
MARKET EVENTS Rupee snaps 3 days of losses on strong foreign fund flows. Sterling dragged down by large UK twin deficits. Dollar buoyant after Fed taper, euro slips on S&P EU downgrade. Yuan steady, tight money market adds to appreciation pressure.
The dollar gave back earlier gains against most major currencies and dipped on Friday after better-thanexpected U.S. growth data enticed investors out of safe-haven dollar positions and into higher-yielding currencies and stocks. Investors also sold the dollar for profits after locking in gains from the Fed Reserve's decision to trim its USD85 bn in monthly bond purchases by USD10 bn. The dollar rallied after the Federal Reserve announced on Wednesday that it was cutting its USD85 bn monthly bond-buying program by USD10 bn in January now that the economy is gaining steam.
KEY RATES As on 20/12/2013 % CHANGE REFERENCE RATE (USD)
USDINR last week traded in tight range and found strong support around the trend line of 61.4000 on daily charts and settled on a flat note. Bulls can prevail if it closes above the immediate resistance of 62.6000 and may face next resistance around 63.3000. While, 61.0500 is still acting as major support for it.
EURINR last week rebounded from the resistance of 84.8000 and dropped to breach the immediate support of 85.0000 and closed around it. It is moving in the same broad range of 86.3000-82.9000 since few weeks and a proper breakout on either side will decide its trend further.
PIVOT TABLE CURRENCIES
INTERNATIONAL UPDATES Dollar Rises for Eighth Week Vs Yen as Fed Trims Bond Buying. Canadian Dollar Drops to 3-Year Low on Central-Bank Divergence. Pound Declines Versus Euro as Deficit Widens, Confidence Drops.
Core PCE Index
Core Durable Goods Orders
New Home Sales