Sell EURINR; target of : 88.84 : ICICI Direct

ICICI Direct, The Euro erased its earlier gains and fell towards the level of 1.0839 yesterday amid a strong dollar and weaker than expected macroeconomic data from the Euro area.

February 01, 2023 / 11:02 IST

Indian Rupee

ICICI Direct's currency report on EURINR

The Euro erased its earlier gains and fell towards the level of 1.0839 yesterday amid a strong dollar and weaker than expected macroeconomic data from the Euro area. Germany's GDP shrank by 0.2% for the quarter in the final three months of 2022, below market expectations of stagnation. The contraction in Europe's largest economy was mainly led by a decline in household consumption amid rising interest rates and stubbornly high inflation • We expect the Euro to continue its downward trend for the day amid a rise in the dollar. Further, market participants will stay cautious ahead of the series of key macroeconomic data from the Euro area like GDP YoY data, which is expected to drop from 2.3% to 2.2%. Meanwhile, forecasts of a increase in German CPI YoY numbers may underline expectations for a 50-basis-point hike from the ECB this week and also signal that rates will be moved higher. EURINR (February) is likely to slide towards the level of 88.84.

Intra-day strategy

EURINR Feb futures contract (NSE)
Sell EURINR in the range of 89.08-89.10
Target: 88.84	Stoploss: 89.27
Support: 88.85/88.70	Resistance: 89.25/89.40

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