USDINR
On Wednesday, The Domestic Unit likely to commence between 79.45 – 79.55 levels against greenback as India's annual consumer inflation remained painfully above the 7% mark and beyond the central bank's tolerance band for the sixth month in a row, official data showed on Tuesday, raising prospects of more rate hikes by central bank next month.
Annual food inflation 7.75% in June vs. 7.97% in May
Economists see core inflation at 5.96-6.2% in June
THE US BOND YIELDS
The US yield on 10-year Treasury notes was down 3.11 basis points to 2.959%, having dropped back below 3% overnight as investors bought safe-haven Treasuries amid a sell-off on Wall Street.
THE EURO
The EURUSD reached $1.00005 on Tuesday against the greenback, the lowest since December 2002, after data showed German investor sentiment in July plunged below levels at the outset of the coronavirus pandemic due to energy concerns, supply bottlenecks and rate hikes from the European Central Bank (ECB).
THE OIL PRICE
On Wednesday, Oil prices fell in early Asian trading as U.S. inventory data showed build-ups in crude oil and refined products amid rising fears of a global economic slowdown.
Investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will hit oil demand. Prices fell by more than 7% in the prior session amid volatile trading.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 79.79 (79.66 – 79.45) 79.31
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