FX Market Insight
The Indian rupee is expected to fall to record lows versus the dollar today after the U.S. consumer inflation accelerated faster than expected, fueling bets of bigger rate increases by the Federal Reserve.
The rupee is likely to open at around 78.15-78.25 compared with 77.83 in the previous session
The dollar climbed to a near four-week high against a basket of currencies on Friday, after data showed U.S. consumer prices accelerated in May, strengthening expectations the Federal Reserve may have to continue with interest rate hikes through September to combat inflation.
The U.S. Dollar Currency Index , which tracks the greenback against six other major currencies, was 0.8% higher at 104.16, its highest since May 17
Indian markets are likely to open gap down today on the back of weak global cues. US inflation has reignited worries about aggressive Fed policy tightening while Covid-19 warning from Beijing added to concerns about growth.
The Nifty futures were trading lower around 15,889.50 level on the Singaporean Exchange at 8:50 IST.
The pivot charts show that the Nifty’s important support level is 15,800, followed by 15,600. The major resistance levels to monitor if the index rises are 16,200 and 16,400
Shares in Asia tumbled on Monday, as major markets in the region saw sharp losses of more than 2% amid a tech sell-off.
The Nikkei 225 in Japan dropped 2.8%, and shares of conglomerate SoftBank Group sliding more than 4%. The Topix index fell 2.2%.
South Korea’s Kospi fell 2.8%, led by tech shares like Samsung Electronics which declined 2.04% while Kakao dipped 3.62%. In Taiwan, the Taiex fell 2.3% as TSMC’s stock slipped 2.26%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded more than 2% lower.
The losses in Asia came as U.S. Treasury yields rose in the morning of Asia trading hours. The benchmark 10-year Treasury note yield climbed to 3.1892% while the yield on the 2-year Treasury surged to 3.1464%.
Markets in Australia are closed on Monday for a holiday
Oil prices slipped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China’s fuel demand, while worries about global inflation and economic growth further depressed the market.
Brent crude futures fell $2.06, or 1.7%, to $119.95 a barrel while U.S. West Texas Intermediate crude was at $118.54 a barrel, down $2.13, or 1.8%.
Prices tumbled after Chinese officials warned on Sunday of a “ferocious” COVID spread in the capital and announced plans to conduct mass testing in Beijing until Wednesday.
Monday, Jun 13, 2022
Monthly GDP 3M/3M Change
Manufacturing Production (MoM) (Apr)
CPI (YoY) (May)
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