Currencies Daily Report Wednesday, June 29, 2016

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1 CONTENTS Market Overview Daily Analysis with fundamental and technical outlook US Dollar Indian Rupee Euro Sterling Pound Japanese Yen Economic Indicators Heena Imtiaz Naik Research Associate Currency (022) Extn :6104 Prathamesh Mallya Sr. Research Analyst Non-agro Commodity & Currency (022) Extn :6134 Harsh Rawat Technical Analyst(Currency) (022) Kaynat Chainwala Research Analyst (022) Extn :6136 Angel Broking Ltd. Registered Office: G-1, Ackruti Trade Centre, Rd. No. 7, MIDC, Andheri (E), Mumbai Corporate Office: 6th Floor, Ackruti Star, MIDC, Andheri (E), Mumbai Tel: (022) Currency: INE / MCX Currency SEBI Regn No: INE / Member ID: Disclaimer: The information and opinions contained in the document have been compiled from sources believed to be reliable. The company does not warrant its accuracy, completeness and correctness. The document is not, and should not be construed as an offer to sell or solicitation to buy any commodities. This document may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose without prior permission from Angel Broking Ltd. Your feedback is appreciated on currencies@angelbroking.com

2 MARKET OVERVIEW After shedding $3 trillion in value post Britain s vote out, global equity markets have gained stability once again. Robust economic data releases from the United States of America also helped to calm down the markets. All the above factors prompted the traders to place fresh bets. US DOLLAR INDEX (USD) In spite of the robust release of GDP data and consumer confidence data from the nation, the American currency traded lower by 0.4 percent in yesterday s trading session. The reason for this could be attributed to the recent strength in the currency that prompted the traders to book profits. Moreover, the robust release of economic data sets from the nations calmed the markets and prompted the traders to place risky assets thereby denting the demand for safe haven DX. Furthermore, investors believe that given the latest event that has caused jitters and uncertainty in the markets, the US Feds ambitions for two rate rises this year may be placed on hold. Technical Chart USD MARKET HIGHLIGHTS (% change) as on June 28, 2016 INDICES LAST CHANGE WOW MOM YOY NIFTY SENSEX DJIA S&P FTSE KOSPI BOVESPA NIKKEI COMMODITY HIGHLIGHTS (% change) as on June 28, 2016 INDICES LAST CHANGE WOW MOM YOY NYMEX CRUDE - $/BBL COMEX GOLD - $/OZ COMEX SILVER - $/OZ LME COPPER (3M) -$/TONNE #N/A CURRENCY HIGHLIGHTS (% change) as on June 28, 2016 CURRENCY LAST CHANGE WOW MOM YOY USD USDINR EURUSD GBPUSD USDJPY INDIAN RUPEE (USDINR) Technical Chart NIFTY 50 The Indian Rupee appreciated by 0.3 percent yesterday on account of sustained selling of American currency by exporters and banks amid lower DX in the overseas markets. Domestic markets i.e. Sensex and Nifty ended mixed as expiry date of future derivative contracts nears. Moreover, markets played safe to the final showdown in seen in the EU Referendum where the Britains voted to leave the European Union. This prompted the traders to make risk-free bets.

3 Technical Chart USDINR Technical Chart EURINR From the intra-day perspective, Rupee is likely to trade sideways to positive as yesterday s robust release of GDP and consumer confidence data from the US will keep the DX supported. However, positive trading in the Asian market equities will govern the trend of the Indian markets and its currency. USDINR Jun 16 (NSE/MSE) Sideways EURO (EURUSD) The Euro currency traded higher by 0.4 percent yesterday due to optimistic comments by some of the member nations of Eurozone in the recent EU summit. Important authorities from some member nations of Euro-zone stated that in spite of the disastrous Brexit, United Kingdom will still be a part of the negotiations thereby giving the monarchy country a breather. Moreover, the PM of UK urged EU leaders to consider reforming rules on freedom of movement, one of the EU s central tenets, to cement a close relationship with Britain post-brexit. Euro currency made an intraday high of and closed at on Tuesday. Euro is expected to trade a bit higher as positive comments from the members of European Union in the recent EU summit will give some support to the sluggish currency. EURINR Jun 16 (NSE/MSE) Down STERLING POUND (GBPUSD) After touching the low of 1986, Sterling Pound has finally found some revival and traded higher by 0.92 percent in yesterday s trading session. This was mainly due to breather given by the EU leaders in the recent EU summit where they confirmed that in spite of the disastrous Brexit, United Kingdom will still be a part of the negotiations thereby giving the monarchy country a breather. Moreover, the PM of UK urged EU leaders to consider reforming rules on freedom of movement, one of the EU s central tenets, to cement a close relationship with Britain post-brexit. Sterling Pound made an intraday high of and closed at on Tuesday.

4 Technical Chart GBP/INR Technical Chart JPY/INR Daily JPYINR=R Cndl, JPYINR=R, , , , , , , (-0.03%) (GMT) Price INR April 2016 May 2016 June Sterling Pound is expected to trade lower today after two rating agencies i.e. Standard & Poor's and Fitch downgraded Britain s credit ratings and warned that further cuts are possible. GBPINR Jun 16 (NSE/MSE) Down Japanese authorities are against Yen appreciation as it hurts their exports and hence the recent appreciation seen in the currency has led to volatility in the Japanese stock markets. Hence the Japanese Yen will trade sideways in today s session. JPYINR Jun 16 (NSE/MSE) Sideways JAPANESE YEN (JPY/USD) The Japanese currency depreciated by 0.7 percent yesterday as robust release of economic data sets from the US calmed down the markets thereby prompting the traders to place risky bets. This acted as a negative factor for safe-haven Yen. To curb this excessive volatility and ensure stability in the markets Japanese government has pledged to stabilize the financial markets. Prime Minister Shinzo Abe, in an emergency meeting has told the Finance Minister Taro Aso to watch currency movements "ever more closely" and take steps if necessary. Yen made an intraday low of and closed at on Tuesday.

5 Economic indicators to be released on June 29, 2016 Indicator Country Time (IST) Actual Forecast Previous Impact FOMC Member Powell Speaks US 4:30am Medium Retail Sales y/y Japan 5:20am % -0.9% Medium German Prelim CPI m/m Euro All Day - 0.1% 0.3% Medium Spanish Flash CPI y/y Euro 12:30pm % -1.0% Medium Net Lending to Individuals m/m UK 2:00pm - 2.9B 1.6B Medium EU Economic Summit Euro Day High Core PCE Price Index m/m US 6:00pm - 0.2% 0.2% Medium Personal Spending m/m US 6:00pm - 0.3% 1.0% Medium Pending Home Sales m/m US 7:30pm % 5.1% Medium Crude Oil Inventories US 8:00pm M High