Currency Highlights. 19 th Jan HighLights:

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1 HighLights: Indian Rupee dropped by 12paise to on Wednesday US Consumer Price Index (CPI) grew by 0.3 percent in Dec Euro Zone Final CPI unchanged at 1.1 percent in December UK s Claimant Count Change plunged by 10,100 in December Indian Rupee came under pressure from two week high and depreciated around 12 paise to end at against the US dollar on Wednesday. The currency depreciated on account of dollar demand from importers and banks. Further, outflow of foreign funds from selling in equities by the institutional investors kept pressure on the currency. So far this year, foreign institutional investors have sold $ million and $ million in equity and debt, respectively. Indian Rupee moved in the range of to in Wednesday s trade. The Reserve Bank of India (RBI) fixed reference rate for the dollar was seen at and Euro stood at as on 18th Jan 17. Market Highlights Last Prev Cl. Price Chng Price Chng % Dollar Index USD/INR (Spot) USD/INR (Nse Jan) EUR/INR (Spot) EUR/INR (Nse Jan) GBP/INR (Spot) (0.44) (0.53) GBP/INR (Nse Jan) JPY/INR (Nse Jan) (0.14) (0.23) For the month of January2017, FII outflows in equities totalled at Rs crores ($ million) as on 18thJanuary Year to date basis, net capital outflows stood at Rs crores ($ million) as on 18thJanuary2017. US Dollar Index gained around 0.6 percent in Wednesday s trading session due to favourable economic data from the country. Further, rise in risk aversion in global market sentiments which led to increase in demand for the low yielding currency kept dollar index in positive territory. US Consumer Price Index (CPI) grew by 0.3 percent in December as against a rise of 0.2 percent in November. Core CPI unchanged at 0.2 percent in December. Capacity Utilization Rate grew by 75.5 percent in December from 74.9 percent a month ago. Industrial Production rose by 0.8 percent in previous month with respect to drop of 0.7 percent in November. Euro against dollar dropped around 0.8 percent on Wednesday on account of strength in the dollar index coupled with weak global market sentiments. However, sharp downside in the currency was prevented due to favourable economic data from the region. Euro Zone Final Consumer Price Index (CPI) remained unchanged at 1.1 percent in December. Final Core CPI also unchanged at 0.9 percent in previous month. The Sterling Pound plunged by more than 1 percent in Wednesday s on account of stronger dollar along with weak global market sentiments. However, sharp fall was prevented due to favourable economic data from the country and Britain Prime Minister Theresa May giving clear view on Britain exiting from the European Union and promise for a vote in Parliament on the final Brexit deal. UK s Average Earnings Index rose by 2.8 percent in November as against a rise of 2.6 percent in October. Claimant Count Change plunged by 10,100 in December from a gain of 1,300 in November. Unemployment Rate remained unchanged at 4.8 percent in the month of November. The Japanese Yen against dollar depreciated around 1.8 percent in Wednesday s trading session due to rise in risk appetite in global market sentiments in early part of the trade which led to decline in demand for the low yielding currency.

2 USDINR JPYINR The pair has been moving in its rising channel pattern and prices have been facing resistance of its upper band of channel pattern at levels on hourly chart. The price has faced resistance of its horizontal trend line at levels on hourly chart. Moreover, prices have been trading below its 21 HSMA which gives the sign of bullishness in the prices. A momentum indicator RSI has shown bearish range shift at 58 levels, which suggest further negative momentum can be seen in the prices. In addition, momentum indicator MACD has shown negative crossover on hourly chart. So for trading perspective, one could sell USDINR in range with SL of for target of On daily chart, it has been observed that the JPYINR has completed a Bullish Bat harmonic pattern at levels the coordinates of which are as follows: The pair has given breakout of its horizontal pattern at levels on daily chart. Moreover, prices have been trading below its 50 DSMA which gives the sign of bullishness in the prices. On daily chart momentum indicator RSI is trading above 50 levels which indicates up side momentum can be seen in the prices. In addition, momentum indicator MACD has shown positive crossover which suggest possibilities of rebound in the prices on daily chart. So for trading perspective, one could JPYINR buy in the range of 60 with SL of for target of levels. Pivot levels for the Day S3 S2 S1 Pivot R1 R2 R3 USDINR JPYINR

3 GBPINR EURINR The prices has been facing resistance of its falling trend line at levels on hourly chart. The price have shown breakdown of its rising channel pattern at levels on hourly chart and price has rested its channel breakdown trend line at levels. Moreover, prices have been trading below 21 HSMA, which suggest short term trend looks weak. Moreover, momentum indicator MACD has given negative cross over on hourly chart, which gives the sign of bearishness in the prices. The momentum indictor RSI has been trading below 60 levels on hourly chart, which suggest the possibilities of further downside momentum in the prices. For now we expect prices should move lower towards 83 levels coming trading sessions. The price has taken support of its horizontal trend line at levels on daily chart. The EURINR pair has also taken support of its falling trend line at levels on daily chart. The pair has been trading above its 21 DSMA on daily chart, which suggest further bullishness can be seen in the prices. On daily chart momentum oscillator RSI has been moving above 50 levels on daily chart, which suggest bullishness in the prices. A momentum indicator MACD has shown positive crossover on daily chart, which support our bullish view to the prices. 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 GBPINR EURINR

4 Economic Indicators Date Time Data Prior Expected Impact :30 PM Fed Chair Yellen Speaks More hawkish than expected = Good for :15 PM Minimum Bid Rate 0.00% 0.00% Actual < Forecast = Good for currency; EURINR :00 PM ECB Press Conference More hawkish than expected = Good for currency; EURINR :00 PM Building Permits 1.20M 1.22M Actual > Forecast = Good for :00 PM Philly Fed Manufacturing Index Actual > Forecast = Good for :00 PM Unemployment Claim 252K 247K Actual < Forecast = Good for :30 PM Crude Oil Inventories 4.1M

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