Forex Insights
USD/INR Spot reference {76.55}:
Yesterday, USD/INR had gap up opening tracking sharp fall in US equity at 76.6700 levels against previous day close of 76.5800.After opening the pair gradually drifted lower on account of IPO’s dollar inflows and exporters covering. In the afternoon session due to sharp fall in EUR/USD we saw abrupt buying which took the pair to a high of 76.7450 levels. The USD/INR then appreciated till day’s low of 76.5100 during later part of the day and finally closed at 76.5200 levels.
Broad Market Snapshot:
US stocks closed mildly stronger after last week’s sharp selloff. Microsoft, Meta reported earnings ahead of market expectations while Alphabet’s numbers were less impressive and missed forecasts.
Russia cutting off the gas supply to Poland and Bulgaria was somewhat surprising. The move by Russia’s Gazprom over payments not being made in Rubles marks a significant escalation of Russia’s energy row with the West. Concerns over energy security and inflation fears add to the negative picture in EUR/USD. EUR/USD (CMP: 1.0551) has reached one of its most important historical milestones, even more important than the euro dollar parity.
USD/INR Price Action and Technicals :
The USD/INR price is stubbornly holding below important resistance at 76.7500 levels which indicates the market’s reluctance to allow for a dip. . Next important resistance would be near all time high near 76.96 areas. The downward momentum is dominant in the short term charts. Immediate support is at 76.4400 levels. Staying below 76.4400 would increase the chance to drift downward towards the next support at 76.3750 then 76.1950 area.
Range for the day:
76.2000 to 76.7450
Equity Insights
Indian Equity
Trends on SGX Nifty indicate a cautious opening for the broader index in India with a gain of 19 points. The Nifty futures were trading around 17,069 levels on the Singaporean exchange.
The BSE Sensex fell 537 points to 56,819, while the Nifty50 plunged 162 points to 17,038 ahead of the expiry of April derivative contracts, and formed a small-bodied bearish candle which resembles a hammer pattern on the daily charts as there was some recovery from the day’s low.
As per the pivot charts, the key support level for the Nifty is placed at 16,961, followed by 16,884. If the index moves up, the key resistance levels to watch out for are 17,113 and 17,188.
Other Equity
Asia-Pacific stocks were higher in Thursday morning trade, as investors in the region look ahead to the Bank of Japan’s latest monetary policy decision.
The Nikkei 225 in Japan rose fractionally while the Topix index climbed 0.31%. South Korea’s Kospi advanced 0.32% while the S&P/ASX 200 in Australia gained 0.94%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.21% higher.
Commodity Insights
OIL
Oil prices rose modestly on Wednesday due to ongoing concerns about tight worldwide supply, underscored by another drawdown in U.S. distillate and gasoline inventories.
Brent crude futures settled up 33 cents to $105.32 a barrel, while U.S. West Texas Intermediate crude settled up 32 cents to $102.02 a barrel.
The U.S. Energy Information Administration said crude stocks rose by just 692,000 barrels last week, short of expectations, while distillate inventories, which include diesel and jet fuel, fell to their lowest since May 2008.
Gold
Gold slipped to a more than two-month trough on Wednesday as the dollar rallied on expectations of aggressive monetary policy tightening by the U.S. Federal Reserve.
Spot gold fell 0.8% to $1,890.29 per ounce , after dropping to $1,881.45, its lowest level since Feb. 24.
U.S. gold futures settled down 0.8% at $1,888.7.
Economic Events
Economic Calendar | ||||
Thursday, Apr 28, 2022 | ||||
Time | Country | Event | Forecast | Previous |
12:00 | JPY | BoJ Press Conference | ||
14:30 | GBP | BoE Gov Bailey Speaks | ||
18:00 | USD | GDP (QoQ) (Q1) | 1.10% | 6.90% |
18:00 | USD | Initial Jobless Claims | 180K | 184K |
Disclaimer: All information in this report is collected from various sites on the internet. Although we have taken all precautions for the correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s own views. We are not responsible for any losses on account of following the same.
Sources
