USDINR
On Wednesday, we are expecting intraday USDINR will trade in range-bound ahead of the USA Federal Reserve interest rate decision tonight, Opening likely to be in the range of 78.05 – 78.15 levels. High global energy and raw material prices combined with a weak rupee fuelled the fastest annual rise in India's wholesale prices in more than 30 years, raising expectations for the central bank to order more interest rate hikes.
May WPI fuel inflation up 40.62% y/y vs 38.66% in April
May WPI food inflation up 10.89% y/y vs 8.88% in April
Economists see the central bank raising the key rate in August
THE MARKET EXPECTATION FROM FOMC
There is a nearly 90% expectation for a 75-basis-point increase at the conclusion of a two-day meeting of the U.S. central bank's Federal Open Market Committee (FOMC) on Wednesday.
THE CABLE
Sterling fell 1.289% to $1.1977, its first dip below the $1.20 level since March 2020, after Scotland's First Minister Nicola Sturgeon said she was set to share details on plans for a new independence referendum. British Prime Minister Boris Johnson and his Conservative Party, which is the opposition party in Scotland, are strongly against a referendum.
THE OIL
On Wednesday, Oil prices dropped on worries over fuel demand ahead of a U.S. Federal Reserve meeting which is expected to see the central bank hike rates by at least 75 basis points to combat inflation.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 78.21 (78.08 – 77.95) 77.82
Comentários