By Seema Yadav
Research Analyst, IndiaNivesh
USD-INR had a slightly bearish day yesterday, and after hitting a one week low of 71.2050 in morning trade it closed at 71.13. Weakness in US dollar against it major peers on worries about global economic slowdown, US government shutdown amid US-China trade tension kept it below previous day close of 71.38.
Technical, Pair retreated from the day high 71.3375 and settled at 71.07, down 0.39%. Since, 16 January 2019, USDINR Future has been consolidating above 71.00 levels on good buying support while on the upside, it failed to cross immediate resistance 71.60 which is 61.8% important Fibonacci Retracement. High wave candle stick witnessed on the EOD chart signaling sideways mode in days to come and range expect to remain in between 71.10-71.55. Crucial support is seen at 70.90 and break below expect to witness bearishness towards 70.50.
Major Economic Data & Events Released Yesterday/Earlier today
Euro zone Flash Composite Purchasing Managers’ Index sank to 50.7, its weakest since July 2013, from a final December reading of 51.1.
Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, tumbled to a 66-month low of 50.7 this month. That was down from 51.1 in December.
French Market services purchasing managers’ index came in a 59-month low of 47.5 this month down from 49.0 in December. Economists had forecast an uptick to 50.6.
U.S. Department of Labor said that the number of individuals applying for initial jobless benefits in the seven days ended Jan. 19 decreased by 13,000 to a seasonally adjusted 199,000.
European Central Bank left interest rates on hold as expected Thursday, as a sharp slowdown in euro area growth fueled expectations that any policy normalization could be delayed. Last month, the ECB ended its four-year long €2.6 trillion ($2.96 trillion) bond purchase plan and reiterated that interest rates are likely to remain on hold at least through the end of summer.
