Commentaries

USD/INR EUR/USD GBP/USD USD/JPY USD/CHF
Macro Support-Resistance Levels 48.00-52.00  1.2600-1.3600  1.5200-1.6200  75.50-78.50  0.8500-0.9500 
Sentiment against USD Positive  Neutral  Neutral  Negative  Neutral 
Forecast for the day 48.80 - 49.30  1.3030-1.3245  1.5700-1.5900  75.85-76.50  0.9065-0.9255 

Updated on Feb 03 09:30 IST

  • In a testimony to the House Budget Committee, Federal Reserve Chairman Ben Bernanke said that the US “remains quite prone to global shocks”, but he also added that the economy “has shown modest signs of improvement since the past few months”.
  • Fed member Charles Evans noted that he favors interest rates to remain ultra-low for extended period, while he also said that further stimulus may be warranted in order to revive the US economic recovery.
  • Chinese Premier Wen Jiabao said that China is considering ways to increase its participation in the EFSF/ESM through the IMF in order to help tame the ongoing Euro zone crisis.
  • His comments supported EURUSD to rally towards the 1.32 handle (high of 1.3196). However, comments from Eurogroup head Jean Claude Junker that measures taken during the recent EU summit to tackle the ongoing crisis have been “quite inadequate”, dragged EURUSD to its session low of 1.3085.
  • GBPUSD was unable to extend its rally beyond the 1.59 handle (high of 1.5859), being partly weighed down by downbeat UK construction PMI data coupled with expectations that the BOE may expand the size of its asset purchases next week.
  • US equities lacked clear directions yesterday and ended the day on a flat note (Dow -0.09%), as caution was seen ahead of the release of pivotal NFP report later tonight. Amongst commodities, Crude oil tumbled to a 6-week low of $95.43, while gold advanced to fresh 8-week high of $1760.98.
  • USDINR has opened the session at 49.12. Movements across the Asian segment have remained quite subdued today, which in turn would provide no clear direction to USDINR. Technically speaking, stability below 49.08 is likely to extend slide towards 48.95. However, as long as 49.08 holds, a move towards 49.27 can be expected.
  • Looking ahead, UK Services PMI is due later today. However, the major focus will remain on the release of US Non-Farm Payrolls and unemployment rate reports during the NY session, which in turn would determine further directions in the Dollar.