ICICI Direct, The pound depreciated by 0.61% on Friday amid a strong dollar and selloff in global markets.
December 20, 2021 / 08:37 AM IST
MapmyIndia IPO
ICICI Direct’s currency report on GBPINR
The pound depreciated by 0.61% on Friday amid a strong dollar and selloff in global markets. However, sharp downside was cushioned on upbeat economic data from country and as Bank of England (BoE) became the first major central bank to raise interest rates. BoE raised the bank rate to 0.25% from 0.1% • The pound is expected to trade with a negative bias on a strong dollar and risk aversion in global markets. Market sentiments were hurt on worries over rising interest rates and surge in Covid-19 cases slowing the global economic recovery. Further, investors fear that rising Covid-19 cases in the country and imposition of restrictions to curb the spread of the new variant will have a negative impact on the economy. However, a sharp fall may be cushioned as Bank of England raised its benchmark interest rate to 0.25% from a record low of 0.1% to tame accelerating inflation.
Intra-day strategy
| GBPINR December futures contract (NSE) | |
| Sell GBPINR in the range of 100.78-100.80 | |
| Target: 100.50 | Stop Loss: 100.95 |
| Support: 100.60/100.50 | Resistance: 100.95/101.05 |
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