TUESDAY FX OUTLOOKS: - RUPEE WEAK, DOLLAR DOWN, OIL DOWN!!

USDINR

On Tuesday, USDINR likely to commence between 82.50 – 82.60 levels despite dollar fell on news that the U.S. services sector barely grew in May as new orders slowed, ending an initial rally sparked by strong jobs growth.

• US, India agree roadmap for defence industry cooperation

• India's monsoon onset delayed by another 2-3 days

• Indian shares end higher on hopes of Fed rate hike pause

• India's services growth defies inflation pressures - PMI

USDINR TECHNICAL

Day Trend: - HOLD

Weekly Trend: - HOLD

INTRADAY RANGE – 83.00 (82.76 – 82.52) 82.28

THE USA INTEREST RATE

According to the CME Group's Fed-Watch tool, The U.S. central bank is viewed as most likely to leave rates unchanged in June, but fed funds futures traders are pricing in a 65% likelihood of at least an additional 25 basis points rate hike by July.

THE OIL

On Tuesday, The Oil prices edged lower, giving up most of the prior session's gains that followed an announcement by the world's top exporter, Saudi Arabia, that it would further cut output.

THE EUROPE

ECB President Christine Lagarde acknowledged "signs of moderation" in core inflation in the euro zone but reaffirmed it was too early to call a peak in that key gauge of price growth, increasing expectations for more interest rate increases from the ECB this month and the next.