USDINR
Welcome to happy Monday, USDINR is likely to commence between 77.55 -77.65 levels as Oil held steady at the week’s open as China made progress toward easing anti-virus lockdowns and the EU continued to work on a plan to ban imports of Russian crude ahead of a leaders’ summit.
The Memorial Day holiday in the United States could make for a thin session ahead of the end of the month.
Growth in Asia's third-largest economy was pencilled in at 4.0% for the January-March quarter from the same period a year ago in a May 23-26 Reuters poll of 46 economists, down from 5.4% in Q4 2021. If realised, that would be the slowest in a year, and a third consecutive quarter of weaker growth.
THE OIL
The Brent Oil traded above $119 a barrel after jumping more than 6% last week to post the highest close in two months. The commercial hub of Shanghai allowed all manufacturers to resume operations from June, while officials said Beijing’s coronavirus outbreak is under control.
Oil markets remain in backwardation, a bullish pattern marked by near-term prices trading at a premium to longer-dated ones.
THE DOLLAR INDEX
On Monday, The dollar index nursed last week's losses & was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little.
THE ASIAN
On Monday, Asian stocks followed Wall Street higher while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.
Helping to mellow the mood was news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lockdown that began two months ago.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.3% to a three-week high.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 77.81 (77.66 – 77.57) 77.45
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