Euro pushes higher as dollar rally pauses
The euro pushed higher against the dollar on Wednesday after Greece played down the threat of an imminent default, as the greenback paused following a rally on the back of expectations for a U.S. rate hike later this year. EUR/USD was up 0.41% to 1.0916, still not far from the one-month lows of 1.0862 struck on Tuesday. The single currency found support after the Greek government expressed confidence to that it would make a €305 million payment to the International Monetary Fund due on June 5.
USD/CAD rises to 1-month highs in early trade
The U.S. dollar rose to one-month highs against its Canadian counterpart on Tuesday, after the release of mixed U.S. durable goods orders data, as expectations for a U.S. rate hike in the coming months continued to support. USD/CAD hit 1.2416 during early U.S. trade, the pair’s highest since April 15; the pair subsequently consolidated at 1.2415, advancing 0.82%. The pair was likely to find support at 1.2275, Monday’s low and resistance at 1.2570, the high of April 15. In a report, the U.S. Commerce Department said that total durable goods orders, which include transportation items, declined by 0.5% last month, compared to expectations for a drop of 0.4%.
Pound falls to 2-week lows vs. stronger dollar
The pound fell to two-week lows against the U.S. dollar on Tuesday, as expectations for a U.S. rate hike in the coming months continued to lend broad support to the greenback.
GBP/USD hit 1.5385 during European morning trade, the pair’s lowest since May 8; the pair subsequently consolidated at 1.5415, sliding 0.36%. Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5591, the high of May 20. The dollar was boosted after Federal Reserve Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later in the year if the economy continues to improve as expected.
Rupee third on fake foreign currency list in Switzerland!
With Switzerland remaining in focus in India’s fight against black money stashed abroad, the quantum of counterfeit Indian rupee seized by Swiss Police is third highest among all foreign currencies despite a sharp fall from the previous year.
As per the latest ‘counterfeit statistics’ released by the the Federal Office of Police (Fedpol), the total number of counterfeit Indian rupee notes seized during 2014 stood at 181, down from 403 in the previous year. This is third highest among all foreign currencies after the euro (2,860) and the US dollar (1,101).
| Important events and their explanation: |
| Time ( IST) | Currency | Economic Data | Expectation | Previous |
| 2:00pm | GBP | Manufacturing Production m/m | 0.20% | -0.60% |
| 4:30pm | GBP | BOE Inflation Report | ||
| GBP | MPC Official Bank Rate Votes | 2-0-7 | 0-0-9 | |
| GBP | Official Bank Rate | 0.50% | 0.50% | |
| GBP | Asset Purchase Facility | 375B | 375B | |
| GBP | MPC Asset Purchase Facility Votes | 0-0-9 | 0-0-9 | |
| Tentative | GBP | MPC Rate Statement | ||
| 5:15pm | GBP | BOE Gov Carney Speaks | ||
| 6:00pm | USD | Unemployment Claims | 273K | 267K |
Explanation:- Out of the above events , GBP MPC Rate and US Unemployment are the most crucial one. We assume Britain’s Central bank will maintain status quo and unchanged the rate . Negative for GBP for a shorter term and US Unemployment figures would gonna increase. Negative for dollar and minor positive for INR.
| Quick Glance : |
| Instrument | Price | %Chg | Volume | OI |
| USD/INR | 64.02 | 0.17 | 788526 | 960103 |
| EUR/INR | 69.905 | -0.82 | 37048 | 48836 |
| GBP/INR | 99.92 | 0.07 | 21059 | 41217 |
| JPY/INR | 51.32 | -0.64 | 7908 | 15311 |
| Technical touch : |
As seen from the chart, Pair is trading above its crucial levels of 64.00 marks and also trading near its converging trendline. We assume USDINR might formed support 63.90 levels with a positive upside till 64.20 levels.