« back to moneycontrol
« back to moneycontrol
CURRENCIES WITH MECKLAI FINANCIAL.
22 February 2021
Monday
Rising COVID cases makes the market jittery.
Last week, the Indian rupee ended at 72.65 to a dollar compared with 72.74 in the previous session. The unit strengthened 0.1% last week. The Nifty and the Sensex fell by 1.2% and 1.3% respectively over the week. Markets ended in the red on four out of five trading days. The weakness led by selling in banks and auto shares. Rising COVID-19 cases and mixed global cues triggered profit selling in domestic shares.
RBI has slowed the pace of intervention and has given some strength to rupee. FII flows poured in though at a reduced pace. We expect rupee to trade with strong bias towards 72.40 with a range of 72.30 to 72.80 levels. However, said that rising crude prices, trade deficit and high US treasury yields pose risk to the rupee rally and any rise in US yields beyond 1.33 levels can be a serious risk to global liquidity.
As the Indian equity market goes on a consolidation mode, global markets along with the GDP data scheduled to be released later in the week is likely to steer the domestic stock markets going ahead. The GDP data for the third quarter which is to be released towards the end of next week is expected to show signs of economic recovery adding positive momentum in Indian market. The economy is expected to record positive growth for the October-December quarter after the 7% contraction in the previous quarter.
India, China complete troop pullout from lake area Indian and Chinese troops have completed a pullout from a lake area on their disputed border in the western Himalayas, setting the scene for disengagement at other friction points, the two countries said on Sunday.
Internationally, the Bears took control of the markets across the globe as worries of increasing US Bond yield and inflation kept investors' mood gloomy, he said, adding that PSU banks outperformed during the week due to developments around privatization, while the sector witnessed profit booking towards the end of the week. The post retail sales rally in the U.S. dollar did not last as the greenback resumed its slide against all major currencies on Thursday. This decline was
somewhat surprising given the sell-off in U.S. stocks and rise in 10-year Treasury yields which typically coincides with a stronger dollar. However, the pullback was supported by economic data.
While the Philadelphia Fed manufacturing index beat expectations, activity slowed from the previous month. Jobless claims also jumped from 793K to 861K last week. Building permits rose 10% but this improvement was offset by a drop in housing starts. Ultimately none of these reports are high impact data for the dollar but they reinforced the lack of demand for the greenback
China calls for reset in Sino-U.S. relations with Biden administration Senior Chinese diplomat Wang Yi called on the administration of U.S. President Joe Biden to work with Beijing to reopen dialogue between the two countries to restore a bilateral relationship damaged under the presidency of Donald Trump
Trading currency involves the right combination of awareness, preparation and action. Over the last thirty years, Mecklai Financial has equipped corporate treasury managers and CFO’s in India’s with actionable advice to optimally manage their market risk .Mecklai will give you the right information, analysis, and updates for traded currency future pairs.
The service will highlight potential trades in currencies with the trading calls rendered through SMS for timely execution. The SMS will mention entry price range, stop loss levels and the expected target zones.
Recommendations are provided for short term and positional trading with entry level and stop loss.
The weekly roundup report will provide detailed insights on the current and future trends in currencies and related commodities like gold and oil. Additionally, it will outline the trend and trading opportunities in the week ahead.
The weekly mailer gives you a smart perspective on how global and domestic events will impact your currency trading with snippets on gold and oil. In addition the charts and the technical levels for each of the four currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) give you firm levels to enter and exit positional trades with optimum risk.
As a new investor in this market you may find Currency trading appear intimidating, but Mecklai will help you break through the layers of jargon and simplify things the various terms for you.
All trades recommended are tracked on a weekly basis so you can see the impact directly on your balance sheets.
Their CEO, Jamal Mecklai, is an authority on all matters market and has been appointed to RBI committees to recommend measures on the local foreign exchange markets and managing commodity risk. He is also consultant to the World Gold Council and the Forwards Markets Commission and a frequent contributor to the media, both print and electronic.
Vision:
To provide clients with unparalleled knowledge of markets and use Mecklai’s experience to enable companies and individuals make optimal use of markets.