USDINR most expected to commence Monday session with positive note in range of 73.35 - 73.45 levels after Greenback was up on early morning in Asia, continuing a rebound over big gains in U.S. yields and hopes for more U.S. stimulus measures that saw some investors tempering bearish bets and seeing the dollar move further away from the multi-year lows seen recently.
INTRADAY RANGE - 72.95 ( 73.22 - 73.48 ) 73.63
U.S. President-elect Joe Biden has promised “trillions” in extra COVID-19 relief spending as he and a Democrat-controlled Congress prepare to take office on Jan. 20. Biden’s promise pushed the yield on the benchmark 10-year U.S. debt up more than 20 basis points to 1.1187% in 2021 to date, in turn helping the dollar to a one-month high , with better rates giving pause to some dollar shorts.
GBP/USD fell 0.014% to $1.3517, and is on track to post a weekly drop for the first time in four weeks.
The pound looked set to snap a three-week winning streak on Friday, as data showed traders were beginning to unwind some of their bullish bets on growing expectations that the Bank of England may soon cut rates into negative territory to support the recovery.
CFTC positioning data, released Friday, showed that speculators trimmed their net long position on sterling in the week ended Jan.5, by 1,000 contracts, to 4,000.
The USD/CNY pair was up 0.21% to 6.4888. Data released earlier in the day showed that the producer price index contracted 0.4% YoY in December, higher than the -0.8% and November’s -1.5% reading. The data also showed that December’s consumer price index also beat expectations, rising 0.7% month-on-month and 0.2% YoY.
Oil commence fresh week with positive note near $52 a barrel as investors weighed prospects for a huge stimulus package from the incoming Biden administration to fight the economic toll of the coronavirus outbreak.
Oil has surged almost 50% since the end of October after a series of Covid-19 vaccine breakthroughs raised optimism for a sustained rebound in fuel consumption, despite the rollout of shots expected to take some time. The broader commodity market is seeing renewed confidence from investors, with record wagers that oil, crops and metals are set to rally.
Investors were keeping a wary eye on U.S. politics as pressure grew to impeach President Donald Trump, though signs were an actual trial could be some time away.
Asian shares took a breather on Monday while Treasury yields were at 10-month highs as "trillions" in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
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