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FRIDAY FX OUTLOOKS: - RUPEE CALM, GERMANY ON RECESSION, GOLD N COPPER DOWN!!

USDINR

On Friday, The Domestic unit (Rupee) is likely to commence between 82.70 – 82.80 levels dollar strengthened for a fourth straight session against a basket of major peers to touch a two-month high, as U.S. data pointed to a resilient economy even after an aggressive rate hike cycle by the Federal Reserve.


· India-US 10-yr bond yield spread at near 14-yr low; likely to widen

· India likely to harvest record wheat crop in 2023 despite rains, hailstorms

· Pratt & Whitney says India's Go First has no right over engines

· FMCG, realty stocks power Indian shares on May series expiry day

· Opposition parties to boycott new parliament inauguration by India's Modi


USDINR TECHNICAL

Day Trend: - UPSIDE SELL

Weekly Trend: - UPSIDE SELL

INTRADAY RANGE – 82.85 (82.77 – 82.69) 82.61


THE STEP OF RECESSION

German economy, Europe's largest, was in recession in the first quarter as GDP fell 0.3%, sending the euro lower. The dollar hit a two-month peak, getting additional support from safe-haven demand as worries mounted about a U.S. default.


THE US GOVT DEBT

U.S. President Joe Biden and top congressional Republican Kevin McCarthy appeared to be nearing a deal to cut spending and raise the limit, with the two sides about $70 billion apart.


Fitch put the United States' "AAA" debt ratings on negative watch, a precursor to a possible downgrade should lawmakers fail to reach an agreement. In addition, credit rating agency DBRS Morningstar put the U.S. on review for a downgrade on Thursday.


THE GOLD

The yellow metal was down about 2% in its worst week since late-January, falling in tandem with a sharp rise in the dollar, which hit a two-month high against a basket of currencies.


The losses in gold saw the yellow metal mark a sharp reversal from record highs hit earlier in May, as easing concerns over an immediate banking crisis sapped the yellow metal of its safe haven appeal.


THE COPPER

This weighed heavily on copper prices, given the red metal’s sensitivity to economic activity. Copper futures plummeted to a near seven-month low this week following a string of weak economic readings from major economies.

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