Currency Market Update 16-Dec :China confirms phase 1 deal

China has confirmed that it has reached a phase 1 deal with US. Consequently, USDCNH pair slipped below 7.00 handle and S&P index rallied to fresh all time high of 3168.8 on closing basis. On the other hand, GBP/USD surged to 1.34 handle as Conservative party won 365 seats out of 650. Boris Johnson’s victory should pave the way for smoother Brexit, thus reducing uncertainty in UK economy.  

On domestic front,  Arcelor Mittal has transferred nearly INR 40,000 Cr, on Friday, to SBI confirming the conclusion of nearly $6 Bn inflow. India 10 year bond yields corrected nearly 8 bps tracking decline US yields. USDINR pair opened the session on a flat note at 70.75 against previous close of 70.81. USDINR pair support at 70.50-55 levels and resistance at 70.85-90 levels. Range for day 70.55-90.