US Sep Durable goods data beat expectations. The overall mood however seems to be that of caution. US Supreme Court saying that states and districts would not have discretion over extending deadlines for receipt of mail in ballots works in favor of president Trump as the Democrat voter base is more likely to vote through mail in ballots. Also appointment of Conservative nominee Amy Coney Barrett to the bench of Supreme Court makes the bench Conservative leaning and which is believed to likely favor Trump in the case of a contested election.  

US treasuries saw some safe haven bid. The Dollar staged a modest recovery after weakening initially. US equities ended the session with losses. 

MSCI's decision to tweak the Foreign Ownership Factor for Indian equities, taking into account the government's decision to increase the cap on FPI investment in Indian equities to respective sectoral FDI caps would push India's weight in the MSCI EM index to 8.8% from 8.1% currently. This is likely to result in inflows to the tune of USD 4bn into Indian equities. The Rupee strengthened on this news. Month end exporter selling and F&O expiry related selling at fix also limited upside in USDINR. 

Today too we are likely to see range bound price action in USDINR. We expect an intraday range of 73.65-74.05. The rally in Gsecs has been accompanied by compression in SDL spreads and corporate bond spreads. Equities may continue to see some positive traction, building on gains from yesterday.

Strategy: Exporters have been advised to cover confirmed order on upticks. Importers are advised to cover through options. The 3M range for USDINR is 72.50 – 74.50 and the 6M range is 72.50 – 75.40.

Chart

Download The Full Daily Currency Insight

This report has been prepared by IFA Global. IFA Global shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. IFA Global nor any of directors, employees, agents or representatives shall be held liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. No liability whatsoever is accepted for any loss arising (whether direct or consequential) from any use of the information contained in this report. This statement, prepared specifically at the addressee(s) request is for information contained in this statement. All market prices, service taxes and other levies are subject to change without notice. Also the value, income, appreciation, returns, yield of any of the securities or any other financial instruments mentioned in this statement are based on current market conditions and as per the last details available with us and subject to change. The levels and bases of, and reliefs from, taxation can change. The securities / units / other instruments mentioned in this report may or may not be live at the time of statement generation. Please note, however, that some data has been derived from sources that we believe to be reliable but is not guaranteed. Please review this information for accuracy as IFA Global cannot be responsible for omitted or misstated data. IFA Global is not liable for any delay in the receipt of this statement. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject IFA Global to any registration or licensing requirements within such jurisdiction. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. IFA Global reserves the right to make modifications and alterations to this statement as may be required from time to time. However, IFA Global is under no obligation to update or keep the information current. Nevertheless, IFA Global is committed to providing independent and transparent information to its client and would be happy to provide any information in response to specific client queries. Neither IFA Global nor any of its directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. The information provided in these report remains, unless otherwise stated, the copyright of IFA Global. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright IFA Global and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.

Recommended Content


Recommended Content

Editors’ Picks

GBP/USD slides to its lowest level since November, eyes 1.2400 ahead of UK jobs data

GBP/USD slides to its lowest level since November, eyes 1.2400 ahead of UK jobs data

GBP/USD drifts lower for the third straight day on Tuesday and drops to its lowest level since November 17 during the Asian session. Spot prices trade around the 1.2420 region as traders now look to the UK monthly employment details for a fresh impetus.

GBP/USD News

EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech

EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech

EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited. 

EUR/USD News

Gold price holds steady below $2,400 mark, bullish potential seems intact

Gold price holds steady below $2,400 mark, bullish potential seems intact

Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.

Gold News

SOL primed for a breakout as it completes a rounding bottom pattern

SOL primed for a breakout as it completes a rounding bottom pattern

Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.

Read more

Key economic and earnings releases to watch

Key economic and earnings releases to watch

The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days. 

Read more

Majors

Cryptocurrencies

Signatures