USDINR
On Thursday, USDINR is likely to commence with mild weaker note between 81.90 – 82.00 between as dollar remained stable as data showed inflation slowed slightly more than expected last month but gave traders little clarity on the U.S. monetary policy outlook.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 82.16 (82.02 – 81.88) 81.74
THE US DATA
On Wednesday, U.S. Labour Department report showed the annual increase in consumer prices dipped below 5% in April for the first time in two years. An inflation measure closely watched by the Federal Reserve also subsided, which could provide incentive for the central bank to pause further interest rate hikes next month. But with inflation still above the Fed's 2% target, rates may need to stay high for some time to tame it.
THE GOLD & COPPER
On Thursday, Gold showed a muted reaction to the data, as investors bet that U.S. interest rates will remain higher for longer. But the prospect of an economic slowdown in the country kept the yellow metal pinned above $2,000, amid steady safe haven demand.
The economic slowdown weighed heavily on copper prices, which sank 1.7% after Wednesday’s CPI reading before steadying somewhat. Copper futures rose 0.1% to $3.8518 a pound, and were trading just above their weakest level in four months.
THE BOE
On Thursday, The Bank of England is poised to raise borrowing costs for the 12th meeting in a row, as it tries to tackle stubbornly high inflation that stands at double the level of the United States and much higher than in the euro zone too.
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