Weekly Forex News and Trend

Market Outlook
India’s rupee tumbled the most since June last year as local shares joined a global selloff triggered by concern over political turmoil in the U.S. and Brazil. It fell as much as 1.2 percent earlier, with some traders also citing dollar demand by oil importers and offshore arbitrage-related selling as the reason for its slide.

The domestic currency, however, earlier fell into the 65 territory, though briefly, during the intra-day trade today. It revisited the 65-level after about one-and-a-half month.

Fundamental News
• Dollar posts worst week in 9 months.
• GDP up by 0.5% in both the euro area and the EU28.
• Japan Q1 GDP Expands 0.5% vs. 0.4% Expected.
• French consumer prices rose by 0.1% over a month and by 1.2% year on year.
• Annual inflation up to 1.9% in the euro area.

Global Updates
• UK consumer price inflation was 2.6% in April 2017, up from 2.3% in March.
• ZEW Indicator of Economic Sentiment for Germany continued to increase in May 2017.
• Declines in U.S. Housing Starts, Permits Show Sector Weakness.
• US Unemployment Insurance Weekly Claims was 232,000, a decrease of 4,000 from the previous week.
• Declines in U.S. Housing Starts, Permits Show Sector Weakness.
• European Monetary Union Current Account n.s.a: €44.8B (March) vs €27.9B.

USDINR last week sustained on lower side for the first half of the week but a sudden surge took it towards higher levels. On daily chart, 65.0000 is acting as crucial resistance for the currency pair and strength can be seen only if it sustains above the same whereas 64.0000 may act as major support for the currency pair.

EURINR last week traded positively on successive sessions and closed the week on strong note. The currency pair surpassed the important level of 71.3000 which is a strong signal and now 72. 5000 has been acting as immediate resistance.

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