Major Developments
-
The US Consumer prices rose at the fastest annual rate since 2008, the CPI surged 5% in May from a year prior.
-
The ECB chose not to signal when it might start reducing its pandemic-era stimulus program and expects inflation to remain below its target in the foreseeable future.
-
India’s forex reserves crossed the USD 600 billion mark for the first time after increasing by USD 6.84 billion in the week ended on 4th June. The reserves surged to a record of USD 605 billion.
USDINR Weekly performance & Outlook
-
The USDINR pair made a gap down opening at 72.86, however, the dollar strengthened against the rupee to close the week at 73.07 levels.
-
The rupee wiped off gains against the dollar because major state-owned banks purchased the greenback persistently, likely on behalf of oil importers who stepped up their demand for the dollar after noting the further rise in crude oil prices.
-
The World Bank has revised lower India's growth forecast for FY22 to 8.3% from 10.1% citing the impact of the second wave on economic activity.
-
The RBI devolved the 10-year benchmark G-Sec on PDs at the weekly auction. PDs, who underwrite G-Sec auctions, had to pick up ₹9975.76 crores worth of this paper out of the total notified amount of ₹14,000 crores.
-
Besides the staff economic projections and dot plot, the focus will also be on what the Fed has to say about the record daily liquidity absorption through reverse repos.
-
The market participants have a lot of expectations from the 16th June Fed monetary policy. Two key factors which Fed focuses on are inflation and job numbers. The core PCE to be the best gauge of inflation rose faster than expected at 3.1% in April as price pressures built in the rapidly expanding U.S. economy. But the job report is still not up to the mark that fed considers for tapering.
-
The Indian rupee is likely to trade with a neutral to upside bias. The focus will be on Retail Sales, Industrial Production, Fed Interest Rate Decision, and Initial Jobless Claims data from the U.S. and WPI and CPI Inflation data from India. The USDINR pair is likely to trade in a range of 72.75-73.70 in the coming week.
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
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.