euro call update---.>26 dec 2012

Euro call given to sell nr 73.09 all target done made low of  72.36

morning currency call update ---> 26 dec 2012

our USDINR call 1st target done of 54.90 made low of 54.8425 call give to sell nr 55.20

REPORT OF FII/INDIAN FOREX RESERVE--26 DEC 2012

Currency Headlines

Yen Declines After Abe Says He May Change BOJ Law GB£
The yen declined toward a 20-month low against the dollar after incoming Japanese Prime Minister Shinzo Abe said he will consider changing the law governing the central bank unless it boosts its inflation target next month.

Japan’s currency fell versus all but one of its major peers on speculation the Bank of Japan will need to step up currency- debasing measures to reach the inflation goal. The dollar weakened versus the euro after rising 0.4 percent on Dec. 21 amid concern that U.S. lawmakers will fail to avert the so- called fiscal cliff of tax increases and spending cuts

Draghi’s Cash Triggers Unprecedented Drop in Bank Lending Stress
European Central Bank President Mario Draghi’s $1.3 trillion of cheap loans and pledge to do whatever it takes to stand behind the euro helped push indicators of stress in the continent’s money markets down by an unprecedented degree this year.

The difference between the euro interbank offered rate and overnight index swaps, a measure of European banks’ reluctance to make unsecured loans to one another known as the Euribor-OIS spread, contracted a record 0.85 percentage point this year to 0.12 percent, according to data compiled by Bloomberg. The Frankfurt-based ECB has lent financial institutions more than 1 trillion euros ($1.3 trillion) under its longer-term refinancing operations since December and is committed to providing cheap, unlimited cash for lenders to boost the economy. Draghi’s pledge to stand behind the currency of the 17- nation euro area in July eased stresses in money markets, where banks fund their day-to-day business











RBI REFERENCE RATE (20-11-12)
 CURRENCY       US$          €URO       GB£            ¥EN
  RATE                 55.0858    72.6164    89.0958       65.29 


INDIAN FOREX RESERVE

TECHNICAL INSIGHT currency--->26 dec 2012

TECHNICAL INSIGHT

USD INR (DEC – Expiry)

USDINR has shown weakness from higher levels. This becomes good “Sell on Rise” candidate.
Sell near 55.20 SL 55.40 for possible TGT of 54.90/54.70/54.50/54.30

EUR INR (DEC – Expiry)
This has remained the strongest pair. Though, it is showing weakness at higher levels. Strong down moves in USDINR can limit the upside in EURINR.
Sell near 73.09 SL 73.20 possible TGT 72.85/72.67/72.54

 GBP INR (DEC – Expiry)
Pound can also face selling pressure from higher levels after too sharp spike up. Can be Sold from higher levels.
Sell near 89.55 SL 89.67 possible TGT 89.41/89.29/88.95

 JPY INR (DEC – Expiry)
Yen takes cues from USDINR, thus this can also be “Sold at Higher levels”
Sell 65.34 SL 65.52 possible TGT 65.19/65/64.81