Weekly Forex Market Update

Market Outlook

The Indian rupee has recovered from the low point of the day and ended marginal higher at 71.20 per dollar on Friday, with domestic equity market ended higher for the sixth consecutive session. Rupee rose and managed to break out of the range following a rally in domestic equities and after UK and the EU announced that a Brexit Deal has been reached.

 The hopes of US-China trade closing the Phase-one deal along with a potential Brexit deal, has kept all emerging market currencies including rupee, afloat.

Fundamental News

  • Sterling fell over half a percent against the dollar, slipping from 5 month highs after the British parliament delayed a crucial vote on a Brexit withdrawal agreement.
  • Turkey’s lira firmed nearly 1%, as the prospect of severe sanctions from the US waned after Ankara agreed to a ceasefire in northern Syria, raising hope of a rate cut by the central bank next week.

Global Updates

  • Australia’s trend unemployment rate remained steady at 5.3 per cent in September 2019.
  • Retail sales, Great Britain was flat (0.0%) in September 2019 when compared with the previous month.
  • UK CPI holds steady at 1.7% YoY rate in September vs. 1.8% expected.
  • UK: Unemployment rate likely to fall to a new multi-decade low of 3.7%.
  • EU Commission: Meeting between Barnier and Barclay was constructive; Cable renews 3-week tops.

USDINR showed positive movements but unable to sustain on higher levels and closed with partial gain from last week closing. Now, 71.0000 is act as crucial zone for the currency pair closing above or below this mark may decide further trend for it. On lower levels 70.5000 is support whereas 72.0000 is act as resistance.

EURINR showed bullish movements throughout the week closed around its immediate resistance zone of 79.5000 above which psychological level of 80.0000 is act as strong resistance for the currency pair, if able to sustain above this mark it may shows more bullish movements. On lower levels 78.5000 is seen as support for it.(Click to submit your details) Just one step to get best trading tips and Recommendation.

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