WEDNESDAY FX OUTLOOKS : MARKET IN RANGE BOUND!!

USDINR

On Wednesday, USDINR likely to commenced between 81.95 – 82.05 levels as safe-haven dollar as market sentiment turned risk-averse amid renewed worries about the banking sector and the outlook for the global economy.

• India says risks weigh on FY24 growth forecast, but macros stable

• India rules out immediate hit of WTO panel ruling on IT tariffs, exploring "options".

• Indian shares rise on improved sentiment amid earnings rush

USDINR TECHNICAL

Day Trend: - BUY ON DIP

Weekly Trend: - HOLD

INTRADAY RANGE – 82.13 (82.02 – 81.90) 81.79

THE USA DATA

U.S. consumer confidence fell to a nine-month low in April, a survey showed on Tuesday. The Conference Board said its consumer confidence index fell to 101.3 - the lowest since July 2022 - from a revised 104.0 in March.

• U.S. housing data, which showed new home sales, beat estimates with a 9.6% rise in March to a one-year high of 683,000 after net revisions.

THE YEN

The yen firmed, behaving like a typical safe haven, even as the Bank of Japan's (BOJ) new governor Kazuo Ueda signaled he was not in a hurry to shift policy. This week's BOJ meeting, which concludes on Friday, is his first in charge.

THE ECB

ECB board member Isabel Schnabel told Politico that a 50 basis point (bps) rate hike was not off the table and would depend on data - notably inflation figures due two days before May's meeting.