USDINR
On Thursday, The domestic unit is likely to commence between 82.70 – 82.80 levels as dollar weakened, handing back some of the previous session's outsized gains as Fed minutes of the meeting, which were released on Wednesday, showed policymakers still focused on controlling the pace of price increases that threatened to run hotter than anticipated, and worried about any "misperception" in financial markets that their commitment to fighting inflation was flagging.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - UPSIDE SELL FOR MIDTERM
INTRADAY RANGE – 83.04 (82.85 – 82.66) 82.47
THE FED MEETING
Federal Reserve's Dec. 13-14 policy meeting agreed the U.S. central bank should slow the pace of its aggressive interest rate increases, allowing them to continue increasing the cost of credit to control inflation but in a gradual way meant to limit the risks to economic growth.
The minutes put a premium on explaining that the decision to move to smaller rate increases should not be construed by investors or the public at large as a weakening of the Fed's commitment to bring inflation back to its 2% target.
THE JPY
USD/JPY fell 0.52% to 131.96, with the yen showing some strength despite data showing that Japanese manufacturing activity contracted for a second consecutive month, weighed by runaway inflation and weak international demand.
THE EURO
EUR/USD rose 0.24% to 1.0624, after activity in the Spanish services sector expanded for the second consecutive month in December, while French inflation unexpectedly fell in December, dropping to 6.7% during the month, down from 7.1% in November. Economists had predicted the figure would climb slightly to 7.2%.
THE OIL
Oil fell by more than $4 a barrel, posting the steepest percentage loss in the first two trading days of any year for over 3 decades, as investors worried about fuel demand as the global economy slows and COVID-19 cases grow in China.
New variant on the card
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