Mtechtips MCX-SX USDINR INTRADAY trading analysis 18-09-2015
Mtechtips Dollar/rupee opened at its lowest level in three weeks and trading at 66.1375 levels as investors sold their dollar holdings after the Federal Reserve kept its short-term benchmark interest rates unchanged at its two-day monetary policy meet.Today, USDINR will expect to test 65.90. Crucial support is 65.85 a break below will show 65.50 next supports on the other hand a failure of break below 65.85 levels could result reversal in the near term.The US Federal Reserve kept its benchmark rates unchanged on Thursday owing to concerns over weak global economy amid weak inflation, while lowering its long-term outlook for the world’s biggest economy. The Fed kept its funds rate in a range between 0-0.25% the same level it’s been at since Dec 2008.The central bank said it continued to see the risks to economic outlook and employment as “nearly balanced” but added that it was “monitoring developments abroad”, a sign that the Fed is still alert over how slower global growth may hurt the US economy.On the Federal Reserve’s policy-making committee, 13 of the 17 members expect the Fed to raise rates by at least 25bps this year; six members of the rate-setting committee forecast an even larger increase.Federal-funds futures, used by investors and traders to place bets on central-bank policy, indicated 16% odds for a rate increase at the October 2015 policy meeting, according to data from CME Group. The odds were 37% before the Fed announcement and 50% a month ago.Fed-funds futures suggested a 45% likelihood of a rate increase at the December 2015, compared with 62% before the Fed’s decision and 73% a month ago, according to CME.The Federal Reserve will next meet on Oct 28.