USDINR
On Wednesday, The Domestic unit (Rupee) is ready to give up previous two session gain against greenback on shocking US CPI data. USDINR is most likely to commence session between 79.45 – 79.55 levels as dollar climbed again near to a 24-year peak on early Asian session amid a jump in U.S. yields after hotter-than-expected inflation boosted bets for even more aggressive monetary tightening by the Federal Reserve next week.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - UPSIDE SELL
INTRADAY RANGE – 79.92 (79.78 – 79.47) 79.17
USA CPI IMPACT
On Tuesday, U.S. Labor Department data showed the headline Consumer Price Index gained 0.1% on a monthly basis versus expectations for a 0.1% decline. In particular, core inflation, stripping out volatile food and energy prices, doubled to 0.6%.
Wall Street saw its steepest fall in two years, the safe-haven dollar posted its biggest jump since early 2020, and two-year Treasury yields, which rise with traders' expectations of higher Fed fund rates, jumped to the highest level in 15 years.
On Wednesday U.S. yield curve was deeply inverted, as a white-hot U.S. inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer.
Money markets currently price 37% odds for a full percentage-point hike on Sept. 21, versus a 63% probability of another 75 basis point move.
10-year Treasury yields climbed to a three-month high following an unexpected rise in the U.S. consumer price index (CPI) for August.
WELCOME TO VOLATILE SESSION
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