USDINR ADVANCE
The Domestic Unit (Rupee) likely to start Friday session with mild weaker note between 72.95 – 73.05 as dollar index hit weekly high, basking in its biggest gains in about a month after robust jobs data threw investors' focus on to the strength of the U.S. recovery and on the possibility of it driving policy tightening.
All eyes RBI monetary policy outcome. Majority bet on no interest rate hike, Central Bank could show concern about inflation.
Last trading session, USDINR witnessed upside pressure from intraday high at 73.1875. Pair finished session at 72.90/91 levels.
Day Trend: - TREND CHANGING.
INTRADAY RANGE – 72.52 (72.82 – 73.12) 73.42
FX Volatility SUBDUED
Hedging costs for foreign exchange swings across the world's 10 most-traded currencies have dropped in recent weeks, causing market watchers to warn of investor complacency and to encourage the buying of protection against future volatility.
Implied volatility - which measures the cost of buying options to protect against FX moves - across the 'G10' group of currencies, has fallen on aggregate in recent weeks, implying that traders expect currencies to be calm in the months ahead.
USDCNY BOUNCE
China's offshore Yuan softened past 6.40 per dollar in early morning in Asia, while other moves were only slight as markets now await the payrolls figures, with options trade showing it is expected to trigger volatility.
OIL PRICE CORRECT
Oil prices dropped as concerns about the patchy roll-out of anti-coronavirus vaccinations around the globe tempered optimism earlier in the week that demand for fuels was recovering from the depths of the pandemic.
More than 170 million have contracted the virus globally, while the death toll approaches 3.8 million, as the second year of the worst global health crisis in a century shows no sign of ending soon.
GOLD TUMBLE
The Gold Price headed for its biggest weekly decline since March on investor concerns over a potential pullback in central bank stimulus amid signs the recovery is gathering pace.
On Thursday Gold Price tumbled 2% as the dollar and Treasury yields rose after better-than-expected U.S. data added to speculation the Federal Reserve may bring forward the timeline for tapering bond purchases. Service providers expanded at the fastest pace on record last month, highlighting the ramp-up in business activity across the economy.
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