DAILY-FOREX-REPORT BY EPIC RESEARCH 17 DEC 2012

Page 1

DAILY FOREX REPORT 17TH DECEMBER 2012

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 HEADLINES Rupee reverses losses after inflation rate eases The rupee recovered from early losses to trade higher on Friday after headline inflation surprised on the downside, raising hopes the RBI could start cutting interest rates as early as January. India's wholesale price index rose a slower-than-expected 7.24 percent in November, less than the 7.6 percent estimated by a Reuters poll. While most economists and market participants believe the central bank may hold rates steady on Dec. 18., some are now expecting that it will infuse some liquidity in the form of a cash reserve ratio cut. "The trending and expectation in headline inflation

 TRADING TIPS  BUY EUR/INR ABOVE 71.46 FOR TGT 71.66/71.86 SL 71.26  PAST PERFORMANCE  BUY EUR/INR ABOVE 71.27 FOR TGT 71.47/71.67 SL 71.07 TARGET ACHIEVED

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has improved, paving way for start of rate cut cycle in January-March 2013," said Moses Harding, head of asset liability management at IndusInd Bank. "A CRR cut of 25 basis points is seen certain to maintain the positive feel," he said. The government is trying to push through more reforms, approving steps on Thursday to speed

up

infrastructure

projects

and

facilitate

investment into the fertilizer sector.

REFERENCE RATE As on 14TH December 2012 UNDERLYING

RATE

USDINR

54.3880

EURINR

71.2920

GBPINR

87.7822

JPYINR

64.8600

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DAILY MARKET STATISTICS PRODUCT NAME

Symbol CHANA

EURINR

EXP DATE

OPEN

Series/Expiry

HIGH

LOW

Unit

7/19/2012

Open

4556

27-Dec-2012

4573

1 EUR

4525

71.3000

CHILLI

7/19/2012

5060

5060

GUR

7/19/2012

1188

1188

JEERA

7/19/2012

14955

14960

EURINR

GBPINR

29-Jan-2013

1 EUR

27-Dec-2012

1 GBP

5018 1178

71.7200

14650

87.9000

1044

1053

High 4560

71.5900

5120

1183.5

71.8300

15052.5

88.1900

Low 4532

71.1425

5018 1178

71.4050

14800

87.6900

7/19/2012

GBPINR PEPPER

29-Jan-2013 42300 1 GBP 4255588.3075 7/19/2012 42250 88.4975 42390 88.0000 42435 7/19/2012

780.5

783.6

SOY BEAN

7/19/2012

4309

4330

JPYINR

JPYINR TURMERIC WHEAT USDINR

27-Dec-2012

29-Jan-2013 7/19/2012

100 JPY

100 JPY 4600

777.4

65.1575

4265.5

65.4350 4676

4518

1049

LTP

KAPAS

REF SOYA

1035

CLOSE

782.85

65.3500

4303

65.6025

1041

781.3

64.8800

4315

65.1925

CHG

Close -28

71.4675 -102 -5.5

PERCENTAGE CHANGE

Prev. Close -0.61

71.2675 -1.99 -0.46

71.7175

71.5175

-252.5

-1.68

88.0175

88.0025

-8

-0.76

88.3300 45

88.3025 0.11

-1.55

-0.2

65.2000

65.4625

12

0.28

65.4275

65.7475

-124

-2.66

4664

4540

7/19/2012 27-Dec-2012 12511USD 1282 54.6475 1251 54.7275 1246

54.3725 1282

54.6125 36

54.6225 2.89

USDINR

29-Jan-2013

1 USD

54.8825

54.9750

54.6325

54.8850

54.8775

USDINR

26-Feb-2013

1 USD

55.1275

55.2150

54.8800

55.1375

55.1000

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DAILY USD/INR CHART

ANALYSIS OPEN: 54.6375 HIGH: 54.7250 LOW: 54.3725 CLOSE: 54.6125

 USD/INR LOOKS SIDEWAYS  TREND: CONSOLIDATED

 STRATEGY: BUY ON DIPS

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DAILY EUR/INR CHART

ANALYSIS OPEN: 71.3525 HIGH: 71.5825 LOW: 71.1425 CLOSE: 71.4675

 EUR/INR LOOKS SIDEWAYS  TREND: CONSOLIDATED  STRATEGY: BUY ON DIPS

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FOREX FORTHCOMING DATA TIME

CURRENCY

DATA

ACTUAL

FORECAST

PREVIOUS

2:30pm

EUR

Italian Trade Balance

0.41B

3:30pm

EUR

Trade Balance

11.3B

7:00pm

USD

Empire State Manufacturing Index

-0.3

-5.2

7:30pm

USD

TIC Long-Term Purchases

22.3B

3.3B

11:30pm

USD

FOMC Member Lacker Speaks

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