FX Market Insight
USD/INR Spot reference {78.0100}:
Yesterday, USD/INR had a gap down opening at 78.0100 against the previous day close of 78.0350. After opening the pair slowly and steadily went up to 78.0675, however improved sentiment in all asset classes dragged the pair lower near 77.97 areas.
After sharp volatility the pair again stuck in a very tight range of 10 paisa only. The pair swung both sides throughout the day and finally settled at 78.0675 levels.
USD/INR Price Action and Technical:
Monday up move was much sharper than anticipated, but the indicators are quite bearish in short term charts, suggesting that the price might fall further lower.
There are two nearby important resistance at 78.3150 and 78.4975.
Staying below 78.00 would be taken as a sign of weakness that could bring the price down towards 77.8050.
Below this point the chart is more likely to turn more bearish. It needs to rise above 78.3150 to tone down the bearishness to some extent.
Unexpected rise above 78.3150 could increase the chances for extending the rise to 78.4975 levels.
Range for the day: 77.8050 to 78.28
Other Currencies
On Tuesday, the dollar soared to a new two-decade high versus a basket of currencies, as markets braced for an aggressive rate hike by the US Federal Reserve this week to combat inflation.
This week, investors have been rattled by increased predictions that the Federal Reserve may raise interest rates more than expected.
The U.S. Dollar Currency Index, which measures how the dollar performs versus six other major currencies, was up 0.3 percent at 105.42, after reaching its highest level since December 2002.
In recent weeks and months, the greenback has benefited from safe-haven flows as inflation and growth-related concerns have plagued economies around the world.
Equity Market Insight
Indian Equity
The market is predicted to open cautiously, as the SGX Nifty indicates that the broader index in India would open flat with a loss of 11 points.
On the daily charts, the BSE Sensex sank 153 points to 52,694, while the Nifty50 fell 42 points to 15,732 and created a bullish candle that resembled an Inverted Hammer pattern.
The pivot charts show that the Nifty’s important support level is 15,642, followed by 15,551. The important resistance levels to watch for if the index rises are 15,840 and 15,948.
Other Equity
Following overnight losses on Wall Street, Asia-Pacific stocks tumbled in early Wednesday trade as the S&P 500 plunged deeper into bear market territory.
Investors in the region will also be watching for Chinese GDP data to be released later today.
The Nikkei 225 index in Japan fell by a fraction in early trading, while the Topix index fell by about 0.1 percent. The Kospi index in South Korea lost 0.17 percent.
The S&P/ASX 200 index fell 0.29 percent in Australia. Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 0.05 percent.
Later on Wednesday, a flurry of Chinese economic data, including industrial production and retail sales for May, will be released.
The S & P 500 index slipped farther into bear market territory overnight on Wall Street, falling 0.38 percent to 3,735.48. The Dow Jones Industrial Average fell 151.91 points to 30,364.83, or 0.5 percent. The Nasdaq Composite, which is heavily weighted in technology, outperformed, advancing 0.18 percent to approximately 10,828.35.
Commodity Insights
OIL
Oil prices fell on Wednesday due to concerns about gasoline consumption ahead of a Federal Reserve meeting in the United States, where the central bank is likely to raise interest rates by at least 75 basis points to battle inflation. find out more
WTI crude futures had fallen 8 cents, or 0.1 percent, to $118.85 a barrel. Brent crude futures were down 26 cents, or 0.2 percent, at $120.91 a barrel.
Inflationary pressures have prompted investors and oil traders to anticipate a major action by the Federal Reserve this week, which might be the greatest interest rate hike in the United States in 28 years.
Major Economic Events
Economic Calendar | ||||
Wednesday, Jun 15, 2022 | ||||
Time | Country | Event | Forecast | Previous |
12:15 | EUR | French CPI (MoM) (May) | 0.60% | 0.40% |
18:00 | USD | Retail Sales (MoM) (May) | 0.20% | 0.90% |
18:00 | USD | Core Retail Sales (MoM) (May) | 0.80% | 0.60% |
20:00 | USD | Crude Oil Inventories | -1.314M | 2.025M |
21:50 | EUR | ECB President Lagarde Speaks | ||
23:30 | USD | Fed Interest Rate Decision | 1.50% | 1.00% |
23:30 | USD | FOMC Economic Projections | ||
23:30 | USD | FOMC Statement | ||
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.
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