Daily Forex Report - March 5, 2013
Uploaded by
api-196234891Daily Forex Report - March 5, 2013
Uploaded by
api-196234891Common questions
Powered by AIThe report suggests a bearish trend for EUR/INR and recommends a strategy of 'sell on rise'. Specifically, it advises selling EUR/INR below 71.66 with targets of 71.51/71.36 and a stop-loss at 71.86 .
The EUR Retail Sales monthly data can significantly affect the EUR/INR exchange rate by influencing investor sentiment and expectations. A better-than-expected increase of 0.3%, compared to a forecast of -0.8%, might have led to an appreciation of the Euro against the INR as it suggests stronger consumer spending and, by extension, a healthier economy. This could increase demand for the Euro, thereby possibly affecting its exchange rate with the INR, despite the report's bearish overall outlook for EUR/INR .
Forecast discrepancies can lead to market volatility, as traders adjust their positions based on new information. If the USD ISM Non-Manufacturing PMI comes in lower than the forecast of 55.0 from 55.2, it might indicate economic weakness, potentially weakening the USD as investors adjust for less favorable economic conditions. Conversely, a better-than-expected result could strengthen the USD. Such forecast discrepancies can trigger swift changes in currency pairs as traders react to adjust their strategies in light of revised economic expectations .
The Epic Research Report provides insights into strategic trading based on changing market prices by offering specific trading tips and targets for various commodities. For instance, it advised selling EUR/INR below a particular level with defined target prices and stop-loss points. This implies a focus on taking advantage of predicted market movements, ensuring minimal losses if the market moves contrary to expectations, as shown by recommendations in the report for commodities like Chana, Chilli, and Gur, which all have specific guidance on target prices and percentage changes .
The appreciation of the Indian Rupee was primarily due to exporter dollar sales. Traders reported corporate dollar selling of up to $250 million earlier in the session, which helped the Rupee inch up to 54.88/89 against its previous close of 54.90/91. The activity pushed the USD/INR pair above the 55 level after it had hit a near two-month low of 55.15. Additionally, a weakening Euro and domestic share market conditions were likely contributing factors to the downward pressure on the USD/INR pair .
The disclaimers in the Epic Research report underline the importance of independent evaluation and seeking professional financial advice for investments. The report acknowledges that while efforts are made to provide reliable information, it does not accept responsibility for potential errors and emphasizes that the information should not be seen as a definitive recommendation. It points out the inherent risks in equity and bullion markets and asserts no responsibility for financial loss resulting from their recommendations. Users are advised to treat the information as one of many factors in their investment decisions .
Epic Research emphasizes the significance of personalized financial advice by advising investors to independently evaluate investments and strategies and seek professional guidance. The disclaimer highlights that while they provide reliable information, it should be one of several considerations in decision-making. Furthermore, they explicitly state the importance of not perceiving their information as individual investment advice, underscoring the need for personalization in investment decisions .
Irregularities in share price projections can lead to misguided investment decisions, as these projections are not necessarily indicative of future performance. The disclaimer in the Epic Research report warns that all estimates and forecasts can change without notice, advising caution. This implies potential volatility and the risk that investors might face unexpected losses if they rely solely on these projections without considering changing market conditions and other influencing factors. It stresses that investors should use these projections as part of a broader evaluation strategy rather than as definitive predictors .
Corporate dollar selling significantly impacts currency exchange rates, as highlighted by the USD/INR scenario. When corporations sell large amounts of USD, it increases the supply of dollars in the market, causing the value of the USD to decrease relative to other currencies like the INR. This leads to an appreciation of the Rupee, as seen when the Rupee inched higher after corporate dollar selling of up to $250 million was reported. Such market dynamics demonstrate how large-scale transactions can influence exchange rates .
The report identifies a bearish trend for the USD/INR exchange rate and recommends a trading strategy focused on 'sell on rise'. This analysis is supported by the daily chart analysis which notes an opening at 55.4075, a high of 55.4400, a low of 55.1250 and a close at 55.1575. The suggestion is to capitalize on any upward movements by selling to take advantage of the expected decrease in the USD/INR pair .