USDINR
Happy Monday, USDINR is very much likely to commence session between 79.75 – 79.85 levels as Dollar Index portrays the market’s cautious optimism as it stays pressured around 107.90 during early Asian session. In doing so, the greenback’s gauge versus the six major currencies drops for the second consecutive day.
THE US DATA
Receding fears of the 100 bps rate hike from the US Federal Reserve, as well as the pre-Fed blackout period, could be cited as the key catalysts behind the market’s latest optimism. The reduction in the hawkish Fed bets could be linked to Friday’s mostly downbeat US data and mixed Fed speak.
A softer US inflation expectations and mixed comments from the Fed policymakers appeared to have weighed on the US Dollar Index the last trading session on Friday. That said, US Retail Sales for June grew 1.0% MoM versus 0.8% expected and -0.1% prior (revised from -0.3%) whereas the University of Michigan's Consumer Confidence Index edged higher to 51.5 in July's flash estimate, versus 49.9 expected and 50.0 prior. However, the Index of Consumer Expectations declined to its lowest level since May 1980 at 47.3. Further, the US Industrial Production also contracted by 0.2% MoM in June while the New York Empire State Manufacturing Index rose to 11.1 versus -2.0 expected and -1.2 prior.
ACTIVE WEEK IN EUROPE
It is shaping up to be a tense week for Europe as it waits anxiously to see if Russia resumes the flow of gas through the Nord Stream 1 pipeline on July 21, while Italy teeters on the brink of political turmoil should Prime Minister Mario Draghi go ahead and resign.
THE OIL
On Monday, Oil prices fell $1 in early trading in Asia, cutting into gains from Friday, as attention turned back to rising COVID-19 cases in China and the prospect of lockdowns again reducing fuel demand in the world's top oil importing nation.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 80.05 (79.91 – 79.77) 79.63
Comments