Currency Highlights. 07 th June 2017

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1 HighLights: The dollar wallowed near a six-week low against the safe-haven yen on Wednesday, with traders cautious ahead of Britain's general election, a European Central Bank policy decision and testimony by former FBI Director James Comey. The dollar has lost 0.9 percent against the yen this week, also pressured by a sharp drop in U.S. Treasury yields to seven-month lows as investors sought the safety of government debt. The U.S. currency was seen coming under more pressure as previously bullish equities also began declining. Wall Street shares pulled away from recent record highs and fell overnight as demand for risky assets waned ahead of Thursday's events. "The dollar has felt the tug of lower U.S. yields for a while now, but buoyant stocks had helped neutralise some of that pressure," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. Market Highlights Close Prev Cls. Price Chg Price Chg % Doller Index USD/INR (Spot) USD/INR (Nse June) EUR/INR (Spot) EUR/INR (Nse June) GBP/INR (Spot) GBP/INR (Nse June) JPY/INR (Nse June) Comey, who will testify on Thursday, was investigating whether Donald Trump's presidential campaign and Russia colluded to sway the 2016 U.S. election when he was fired by Trump in May. Investors are worried his testimony could dampen already flagging momentum for Trump's agenda of rolling back regulations and overhauling the tax code. The common currency was still shy of the seven-month high of $ touched on Friday as a wait-and-see mood prevailed ahead of the European Central Bank's policy meeting on Thursday, another of this week's major events that the markets are bracing for. The dollar fell below the 110 level against the yen on Tuesday, hitting a one-and-a-half month low as investor jitters over looming geopolitical risk events sparked a flight to safe haven assets. While the ECB is not expected to shift rates or make changes to its quantitative easing scheme this week, market participants will sift through President Mario Draghi's statements for his view on the euro zone economy. Tempering expectations for the ECB to start planning an exit from is easy policy, Draghi said last week that while euro zone growth may be improving, inflation remains subdued and still requires substantial stimulus. "Of the three big events on 'Super Thursday,' the ECB meeting could be the least disruptive as participants have already had time to curtail their previously hawkish expectations," said Ayako Sera, senior market economist at Sumitomo Mitsui Trust. The Australian dollar added 0.45 percent to reach a one-month high of $ AUD=D4 after data showed the resource-rich economy grew 0.3 percent in the first quarter, dousing fears that its record expansion may have ended. Sterling has seen choppy trading on polls suggesting outcomes ranging from a majority for Prime Minister Theresa May's party to a 'hung' parliament in which no party has an overall majority.

2 USDINR JPYINR On a weekly chart, the pair has been trading in its horizontal channel pattern formation from past few weeks and taken the support of its lower band of the channel at 64 levels. On a weekly chart, the pair has formed hammer candle stick pattern, which is bullish reversal candle stick pattern. Moreover, prices have been trading above its 21 DSMA which gives the sign of bullishness in the prices. A momentum indicator RSI has taken of its horizontal trend line at 30 levels, which suggest the possibilities of upside momentum in the prices. So for trading perspective, one can buy USDINR in the range of with SL of for the target of levels. On a daily chart, the price has been trading in its falling channel pattern formation and price has taken the support of its lower band of channel at levels. Moreover, prices have been trading above its 50 DSMA which gives the sign of bullishness in the prices. On a daily chart momentum indicator, RSI has remained above 40 levels which indicates upside movement in the prices. In addition, momentum indicator MACD has shown positive crossover which suggests further upside momentum in the prices on a daily chart. So for trading perspective, one can buy JPYINR in the range of with SL of for the target of levels. Pivot levels for the Day S3 S2 S1 Pivot R1 R2 R3 USDINR JPYINR

3 GBPINR EURINR On a weekly chart, the price has been trading in falling wedge formation and price has faced resistance of its upper band of wedge pattern at levels. The pair has faced resistance of its horizontal trend line at levels on a daily chart. Moreover, prices have been trading below its 21 DSMA, which suggest short term trend looks weak. Moreover, momentum indicator MACD has given negative crossover on a daily chart, which gives the sign of bearishness in the prices. A momentum indicator RSI has remained below 60 levels on a daily chart, which support our bearish view on the pair. For now, we expect prices should move lower towards levels in the coming trading sessions. On a daily chart, prices have been trading in falling channel pattern from past few weeks and price has taken the support of its lower band of the channel pattern at 69 levels. The pair has given breakout of its horizontal trend line at levels on the daily chart. The pair has been trading above its 50 DSMA on a daily chart, which suggests further positive momentum can be seen in the prices. On a daily chart momentum oscillator, RSI has remained above 60 levels, which suggests the possibilities of further upside momentum in the prices. A momentum indicator MACD has shown positive crossover on the hourly chart. For now, we can expect prices should move higher towards levels in the coming trading session. Pivot levels for the Day S3 S2 S1 Pivot R1 R2 R3 EURINR GBPINR

4 Economic Indicators Date Time Data Prior Expected Impact :30 AM German Factory Orders m/m 1.0% -0.2% Actual > Forecast = Good for currency; EURINR :00 PM Crude Oil Inventories -6.4M

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