USDINR
On Tuesday, USDINR is likely to commence session between 82.55 – 82.65 levels as dollar were firm leading into the release of U.S. inflation data and the final Federal Reserve meeting of the year, with investors waiting to update interest rate outlooks.
INDIA CPI DATA
· Nov CPI at 5.88% vs 6.77%(Oct)
· Nov Food price inflation at 4.67% vs 7.01%(Oct)
· Nov core CPI 6%-6.26% vs 5.9%-6.3%(Oct)
Indian and Chinese troops suffered minor injuries in a clash in the Tawang sector of India's Arunachal Pradesh state on Dec. 9, the Indian army said on Monday, the first such incident since the deadly clash between the two Neighbours in June 2020.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - UPSIDE SELL FOR MIDTERM
INTRADAY RANGE – 82.93 (82.69 – 82.44) 82.20
THE USA CPI IMPACT
The U.S. dollar has been supported by high and rising interest rate expectations as the Fed has hiked its benchmark funds rate to counter inflation, leaving the currency vulnerable to selling if inflation seems to be cooling.
The small surprise to the downside unleashed a wave of bond-buying and dollar selling on the expectation that inflation had peaked. The figures due will test that assumption, while Fed's decision on Wednesday should provide some reasonably instant feedback from policymakers.
THE EUROPE
Meanwhile, the euro steady at $1.0547, as was sterling at $1.2277. The Swiss franc was at 0.9353 per dollar as traders eyed Thursday meetings of the European Central Bank, Bank of England and Swiss National Bank.
THE GOLD
Gold has had a strong performance recently as traders widely believe that inflation has peaked, while some are hoping that a soft landing is still possible.
THE OIL
Hedge funds and other money managers sold the equivalent of 30 million barrels in the six most important petroleum-related futures and options contracts over the seven days ending on Dec. 6.
Portfolio investors were heavy sellers of petroleum for the fourth week running as the smooth introduction of the Russia price cap brought the weakness of the economy and oil demand into sharper focus.
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