USDINR
On Tuesday, USDINR is likely to commence session between 81.70 – 81.80 levels as dollar traded higher in early asian session, and the Chinese yuan slumped to a two-week low as protests against the Chinese government’s mobility restrictions to combat surging COVID cases prompted safe haven flows.
On Monday , The Indian rupee recovered its opening losses to end largely flat against the dollar, while forward premiums declined more to slip below a key level.
On Monday, Fitch Ratings said, Loan growth at Indian banks will accelerate to 13% in this fiscal year despite the RBI raising interest rates, as economic activity picks up after a pandemic led lull.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 82.02 (81.80 – 81.57) 81.35
MAJOR FX
EUR/USD 1.0340, ahead of a speech by ECB President Christine Lagarde to the European Parliament, later in the session. Traders will be looking for clues as to whether the European Central Bank will continue with a 75-basis-point rate increase in December, given Eurozone CPI traded above 10% in October, or whether a hike of 50 basis points is more appropriate as the region heads into recession.
GBP/USD 1.1960, retreating from the three-month high of 1.2153 seen late last week, while the risk-sensitive AUD/USD slumped 0.92% to 0.6680, with slowing Chinese growth likely to hit demand for Australia’s raw materials.
USD/JPY to 139, with the Japanese yen helped by market expectations of a less hawkish Federal Reserve, while core CPI inflation in Japan’s capital, Tokyo, rose more than expected to a 40-year high in November, data showed on Friday.
THE METAL
On Tuesday, Gold prices fell below a key support level after hawkish comments from Federal Reserve officials brewed some uncertainty over the path of U.S. monetary policy, while copper prices steadied as markets awaited more developments in China.
Copper, on the other hand, marked a volatile start to the week, sinking as much as 2% before recovering sharply to trade higher.
Reports suggested that workers at Chile’s massive Escondida copper mine will not go on strike, reducing the prospect of tight supply in the coming months.
Seems in near future there will be some volatility!!
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