last couple of days The Domestic Unit ( Rupee) showing strength near resistance levels 73.75 - 73.95 levels against greenback as huge capital inflow from FII. Indian 10Yr yields going north day to day last trading at 5.94% on anticipation of increasing inflation as liquidity persist in system. As FII inflow maintain regular flow till then Domestic unit enjoy rally.
On last trading session , At the interbank market, Rupee opened at 73.83/84 against the greenback and witnessed an intra-day high of 73.52/53 and a low of 73.85/86. The local unit finally closed at 73.52/53 against the Dollar, registering a rise of 38 pips over its previous close.
Farmers’ protests against new laws liberalizing agricultural markets spread across India on Tuesday, as farm organizations called for a nationwide strike after inconclusive talks with Prime Minister Narendra Modi’s government.
Social media has fanned sympathy for the farmers’ cause among the Indian diaspora abroad. During recent days, thousands of people have protested in support of the farmers outside the Indian embassy in central London.
INTRADAY RANGE - 73.12 ( 73.39 - 73.78 ) 74.11
BREXIT
U.K. dropped parts of its controversial internal market bill, paving the way for both sides to meet in Brussels on Wednesday to clinch an agreement.
A source of contention among EU leaders as it clashes with key terms of the withdrawal agreement requiring that Northern Ireland, in the post-Brexit period, follow EU rules in order to avoid a hard border with the Republic of Ireland -- is not one of the key sticking points that have held negotiations hostage.
Market participants appear hopeful, however, that Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will reach a consensus on sticking points that have held negotiations hostage so far.
Ireland’s Foreign Minister Simon Coveney said that this could provide a ‘positive momentum’ for trade talks between the two sides.
GBP investors have become more hopeful that progress could be made towards a post-Brexit trade deal with the European Union.
Eurozone’s economy is becoming increasingly uncertain, with concerns that rising Covid-19 infections could jeopardise Germany’s economic recovery.
COMMODITY
On Wednesday , Oil prices edged south on concerns over an unexpected jump in U.S. oil inventories last week, but positive news on COVID-19 vaccines lifted investors hopes for a recovery in fuel demand, capping losses.
The American Petroleum Institute said on Tuesday that U.S. crude oil, gasoline and distillate stocks rose sharply last week, with crude stocks jumping by 1.14 million barrels, contrary to analyst forecasts in a Reuters poll for a draw of 1.42 million barrels.
On Tuesday , Gold prices hit a 3 week high settling up for the 5th time in 6 sessions, racing toward market bulls’ apparent target for $1,900 an ounce on expectations that the U.S. Congress will agree on a new round of spending for the coronavirus pandemic.
In Tuesday’s trade, gold for February delivery on Comex settled up $8.90, or 0.5%, at $1,874.90 an ounce. It hit a session high of $1,879.75 — a peak in three weeks.
Despite the continued emphasis on risk, gold as a haven is rallying again on talk of a new U.S. Covid-19 stimulus effort, which triggered a plunge instead in the dollar, the alternative trade to the yellow metal.
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