- USD/INR is hovering near a 10-day low of 81.65 as weaker oil prices have supported the Indian rupee.
- The USD Index has gradually corrected amid an improvement in market sentiment.
- Lower US GDP data will strengthen the case for neutral interest rate guidance from the Fed.
The USD/INR pair is auctioning near a 10-day low of 81.65 in the Asian session. The major is expected to remain on the tenterhooks as investors are shifting their focus towards the release of the United States Gross Domestic Product (GDP) (Q1). The pace in contraction or expansion of growth rate will guide investors about the likely monetary policy action by the Federal Reserve (Fed) for the meeting scheduled next week.
S&P500 futures have added gains in the Tokyo session despite a sell-off on Wednesday. Investors should be aware of the fact that the 500-US stock basket was also positive after a bearish Tuesday’s session, which indicates that the upside is critically capped. This also, indicates that investors are utilizing pullbacks as a bargain-selling opportunity.
The US Dollar Index (DXY) has corrected gradually to near 101.36 after failing to extend the rally. It seems that a mild improvement in the risk appetite of the market participants is barricading the USD Index from resuming the upside move. Also demand for US government bonds has dropped which has fueled yields. The 10-year US Treasury yields have climbed above 3.44%.
On the economic data front, the US GDP data is expected to land at 2.0% lower than the former release of 2.6%. The anticipated landing of US GDP will bolster the case of neutral interest rate guidance from the Fed for its May monetary policy meeting as a rate hike of 25 basis points (bps) is widely expected.
Meanwhile, the Indian Rupee will show a power-pack action on Friday amid the release of the Fiscal Deficit data. For now, weaker oil prices have strengthened the Indian rupee. It s worth noting that India is one of the leading importers of oil in the world and lower oil prices will strengthen India’s current account and henceforth will strengthen the Indian rupee.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.