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Buy on fear, sell on greed. The trend is your friend.

23 DEC - 27 DEC 2013

Buy on the rumor, sell on the news.

Amateurs want to be right.

Professionals want to make money.

MARKET EVENTS Rupee snaps 3 days of losses on strong foreign fund flows. Sterling dragged down by large UK twin deficits. Dollar buoyant after Fed taper, euro slips on S&P EU downgrade. Yuan steady, tight money market adds to appreciation pressure.

MARKET OUTLOOK
The dollar gave back earlier gains against most major currencies and dipped on Friday after better-thanexpected U.S. growth data enticed investors out of safe-haven dollar positions and into higher-yielding currencies and stocks. Investors also sold the dollar for profits after locking in gains from the Fed Reserve's decision to trim its USD85 bn in monthly bond purchases by USD10 bn. The dollar rallied after the Federal Reserve announced on Wednesday that it was cutting its USD85 bn monthly bond-buying program by USD10 bn in January now that the economy is gaining steam.

CURRENCIES

PREVIOUS RATE
62.3575 85.5300 101.4975 60.1825

CURRENT RATE
62.2250 84.9675 101.6475 59.6150

KEY RATES As on 20/12/2013

% CHANGE
REFERENCE RATE (USD)

62.2450 7.75% 6.75% 4% 7.52%

USDINR EURINR GBPINR JPYINR

-0.21
REPO RATE

-0.65 0.14 -0.94

REVERSE REPO CRR INFLATION

USDINR

USDINR last week traded in tight range and found strong support around the trend line of 61.4000 on daily charts and settled on a flat note. Bulls can prevail if it closes above the immediate resistance of 62.6000 and may face next resistance around 63.3000. While, 61.0500 is still acting as major support for it.

EURINR

EURINR last week rebounded from the resistance of 84.8000 and dropped to breach the immediate support of 85.0000 and closed around it. It is moving in the same broad range of 86.3000-82.9000 since few weeks and a proper breakout on either side will decide its trend further.

PIVOT TABLE CURRENCIES

USDINR EURINR GBPINR JPYINR

S1
61.6000 84.4000 101.2000 58.8000

S2
61.0000 83.5000 100.3000 57.6000

S3
60.3000 82.7000 99.3000 56.3000

R1
63.0500 85.8000 102.5000 60.4000

R2
63.6000 86.7000 103.2000 61.4000

R3
64.5000 87.5000 104.1000 62.5000

INTERNATIONAL UPDATES
Dollar Rises for Eighth Week Vs Yen as Fed Trims Bond Buying. Canadian Dollar Drops to 3-Year Low on Central-Bank Divergence. Pound Declines Versus Euro as Deficit Widens, Confidence Drops.
BLOOMBERG ESTIMATE 0.1% PREVIOUS LEVEL 0.1%

DATE

TIME 07:00 PM 07:00 PM 08:30 PM 07:00 PM

COUNTRY

EVENT

23-Dec-2013

US

Core PCE Index Core Durable Goods Orders

24-Dec-2013

US

0.9%

0.4%

24-Dec-2013

US

New Home Sales Unemployment Claims

449k

444k

26-Dec-2013

US

382k

379k

DISCLAIMER

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