USDINR
Happy Monday, USDINR is most likely to commence session with firm note between 79.85 – 79.95 levels as dollar touched a new 20-year high against a basket of currencies on ealy Asian session, benefiting from weakness in the euro amid a worsening energy crisis, while investors continued to bet on more interest rate hikes by the Federal Reserve.
USDINR TECHNICAL
Day Trend: - BUY ON DIP
Weekly Trend: - HOLD
INTRADAY RANGE – 80.18 (79.96 – 79.74) 79.52
THE DOLLAR
Strength in the dollar also comes on the heels of better-than-expected nonfarm payrolls data on Friday, which gives the Federal Reserve more space to hike interest rates sharply.
While wage growth slowed and unemployment rose unexpectedly, investors remained confident that relative tightness in the jobs market would give the central bank enough impetus to raise rates sharply in September.
Traders are pricing in a 57% chance the Fed will raise rates by 75 basis points this month. The central bank has hiked rates four times this year, as it struggles to combat inflation running at 40-year highs.
THE JPY
The Japanese yen are among the worst-hit by rising interest rates, given the reluctance by their respective central banks to tighten policy. On Monday in early Asian session USDJPY trading above 140.
THE STERLING
The British pound (GBPUSD – 1.1483) is well below in early Asian session over two years against the dollar, as the ruling Conservative Party prepares to elect a new leader to replace outgoing Prime Minister Boris Johnson.
The yield on the 10-year benchmark U.K. bond, or Gilt, rose another 7 basis points on such prospects Friday to a new eight-year high of 2.95%.
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