EUR/USD posted a strong move
The euro fell to the lowest level in nearly seven weeks against the dollar on Friday, as upbeat U.S. economic data highlighted the diverging monetary policy outlook between the Fed and the European Central Bank.
EUR/USD declined 0.41% to 1.0831 late Friday after falling to 1.0829 earlier in the session, the weakest level since May 27. The single currency lost 3% against the greenback on the week, the worst weekly performance in two months. Data on Friday showed that U.S. consumer prices rose 0.3% in June, the fifth consecutive monthly increase, while core prices, which exclude food and energy, increased 0.2% last month, adding to signs of firming inflation.
Sterling inches up from lows after budget, robust housing data
Sterling inched up from a one-month low on Thursday, drawing some support from a British budget bill that was not as fiscally tight as many investors had expected, as well as strong numbers from the housing market. The pound was unmoved by the Bank of England’s decision to, as expected, keep its benchmark interest rate at the record low of 0.5 percent, as policymakers grappled with how to balance improving wage growth in
Britain against more ominous signals from the global economy. The outlook for BoE interest rates hinges to a large extent on how rapidly British wage growth picks up.
Yen, Swiss franc weaken as China stocks gain, Greek fears ease
The safe-haven yen and Swiss franc fell on Thursday after Chinese stocks rebounded and worries about Greece eased somewhat as Europe awaited reform proposals from the debt-burdened country to back its request for another three-year loan.
The 6 percent gain in Shanghai shares was enough to restore optimism from investors after a rough month dominated by Greece’s troubles and a more than 30 percent drop in China’s main stock market indexes. Those elements were behind the biggest one-day push this year into the yen on Wednesday, although on Thursday, the Japanese currency gave up some of those gains
| Important events and their explanation: |
| Time ( IST) | Currency | Economic Data | Expectation | Previous |
| 12:00am | USD | Treasury Sec Lew Speaks | 49.4 | 48.9 |
| 7:00am | AUD | Monetary Policy Meeting Minutes | 48.6 | 48 |
| 11:30am | CHF | Trade Balance | 2.78B | 3.43B |
| 2:00pm | GBP | Public Sector Net Borrowing | 8.6B | 9.4B |
Explanation:-
CHF- If Actual comes better than forecast , good for CHF and for the market
GBP – We expect it to remain same, any change would create significant impact on GBP.
| Quick Glance : |
| Instrument | Price | %Chg | Volume | Support | Resistance |
| USD/INR | 63.575 | -0.0475 | 233176 | 63.47/33 | 63.72/84 |
| EUR/INR | 70.6575 | 0.3625 | 28576 | 70.45/30 | 70.82/71.10 |
| GBP/INR | 97.93 | 0.0675 | 6318 | 97.68/43 | 98.46/98.70 |
| JPY/INR | 52.1075 | -0.27 | 11042 | 51.80/42 | 52.58/52.70 |
USDINR
As seen pair is trading near its crucial support of rising trend line in a 120 mins chart. Interestingly pair is trading near its rock solid support at 65.50 levels.
For the next few sessions we assume if pair might jump till 63.70-80 levels
EUR INR
After a prolonged downtrend pair tried to form its base and RSI moved into bullish territory.
As seen pair is also forming a bearish flag in a daily chart. Hence we assume a bounce back in the coming trading days till 68.36.