Currency Headlines
Canadian Dollar Falls as European Confidence Survey Jumps
The Canadian dollar fell against the euro and the majority of its most traded peers as economic confidence in the euro area improved, adding to signs that the 17-nation currency bloc may be emerging from a recession.
The Canadian currency fell against its U.S. counterpart before a Federal Reserve announcement may show commitment to monetary stimulus, according to a Bloomberg survey of 44 economists. An index of executive and consumer sentiment rose to 89.2 from a revised 87.8 in December, the European Commission in Brussels said today. That’s the highest since June. Economists had forecast an increase to 88.2, according to the median of 30 estimates in a Bloomberg News survey.
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, fell 0.2 percent to C$1.0024 per U.S. dollar at 7:57 a.m. in Toronto. One loonie buys 99.76 U.S. cents. It fell 0.5 percent to C$1.3575 per euro.
Rupee Rises to Three-Month High on Optimism Inflows Will Climb
India’s rupee rose to the highest level since October on optimism the first interest-rate cut by the central bank in nine months will spur economic growth, attracting investors.
The Reserve Bank of India lowered its benchmark repurchase rate to 7.75 percent from 8 percent yesterday, and said cooling inflation will give some room to ease monetary policy further. Global funds poured $4 billion into local bonds and stocks this month through Jan. 28, boosting debt holdings to an all-time high of $33.5 billion, exchange data show. The government’s 10- year bonds yield 7.89 percent, while similar-maturity U.S. Treasuries pay 2 percent.
“We expect gradually ebbing inflationary pressures to facilitate further rate cuts in coming months, which are likely to promote greater economic growth and foreign inflows,” analysts at Barclays, including Singapore-based Nick Verdi, wrote in a report received today. “Emerging-market currencies that offer carry, such as the rupee, remain attractive against the backdrop of still-ample global liquidity.”
The rupee advanced 0.9 percent to 53.3050 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 53.2750 earlier, the strongest level since Oct. 18. The currency has risen 3.2 percent this month
TECHNICAL INSIGHT USDINR FEB 2013
The pair has failed to sustain the up moves. Its “ Sell On Rise”
Sell near 53.80 SL 54 TGT 53.6/53.4/53.2
EURINR FEB 2013
EURUSD has shown strength. This should be seen in EURINR also.
Buy near 72.35 SL 72.23 TGT 72.57/72.85
GBPINR FEB 2013
GBPINR follows global weakness in GBPUSD. Its prudent to take any bet after watching 1st hour of trade as chances of opening with gap are very high.
JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR
Canadian Dollar Falls as European Confidence Survey Jumps
The Canadian dollar fell against the euro and the majority of its most traded peers as economic confidence in the euro area improved, adding to signs that the 17-nation currency bloc may be emerging from a recession.
The Canadian currency fell against its U.S. counterpart before a Federal Reserve announcement may show commitment to monetary stimulus, according to a Bloomberg survey of 44 economists. An index of executive and consumer sentiment rose to 89.2 from a revised 87.8 in December, the European Commission in Brussels said today. That’s the highest since June. Economists had forecast an increase to 88.2, according to the median of 30 estimates in a Bloomberg News survey.
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, fell 0.2 percent to C$1.0024 per U.S. dollar at 7:57 a.m. in Toronto. One loonie buys 99.76 U.S. cents. It fell 0.5 percent to C$1.3575 per euro.
Rupee Rises to Three-Month High on Optimism Inflows Will Climb
India’s rupee rose to the highest level since October on optimism the first interest-rate cut by the central bank in nine months will spur economic growth, attracting investors.
The Reserve Bank of India lowered its benchmark repurchase rate to 7.75 percent from 8 percent yesterday, and said cooling inflation will give some room to ease monetary policy further. Global funds poured $4 billion into local bonds and stocks this month through Jan. 28, boosting debt holdings to an all-time high of $33.5 billion, exchange data show. The government’s 10- year bonds yield 7.89 percent, while similar-maturity U.S. Treasuries pay 2 percent.
“We expect gradually ebbing inflationary pressures to facilitate further rate cuts in coming months, which are likely to promote greater economic growth and foreign inflows,” analysts at Barclays, including Singapore-based Nick Verdi, wrote in a report received today. “Emerging-market currencies that offer carry, such as the rupee, remain attractive against the backdrop of still-ample global liquidity.”
The rupee advanced 0.9 percent to 53.3050 per dollar in Mumbai, according to data compiled by Bloomberg. It touched 53.2750 earlier, the strongest level since Oct. 18. The currency has risen 3.2 percent this month
TECHNICAL INSIGHT USDINR FEB 2013
The pair has failed to sustain the up moves. Its “ Sell On Rise”
Sell near 53.80 SL 54 TGT 53.6/53.4/53.2
EURINR FEB 2013
EURUSD has shown strength. This should be seen in EURINR also.
Buy near 72.35 SL 72.23 TGT 72.57/72.85
GBPINR FEB 2013
GBPINR follows global weakness in GBPUSD. Its prudent to take any bet after watching 1st hour of trade as chances of opening with gap are very high.
JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR
