- USD/INR keeps Friday’s rebound following three-week downside, eases of late.
- US-China trade deal termed as win-win situation, even for inflation concerns.
- Fed tapering tantrums remain elevated, India’s active covid cases fall to the lowest since February.
- US ISM Manufacturing PMI, China headlines may entertain traders ahead of Wednesday’s Fed meeting.
USD/INR retreats from intraday high, declining to 74.90 ahead of Monday’s European session.
Although the recently positive headlines for the risk catalysts help the Indian rupee (INR) pair to consolidate gains made since Friday, the cautious sentiment ahead of Wednesday’s US Federal Reserve (Fed) monetary policy meeting keeps the pair buyers hopeful.
US Treasury Secretary Janet Yellen’s comments saying that, per Reuters, the reciprocal lowering of tariffs could help ease inflation recently underpinned the risk-on mood. Earlier in Asia, China’s upbeat Caixin Manufacturing PMI and hopes of US stimulus favored firmer sentiment.
However, firmer US Core PCE Price Index data, the Fed’s preferred inflation gauge, keeps the tapering tantrums on the table and favors the US Treasury yields, as well as the US dollar. On the same line were fears of China’s economic transition amid downbeat official PMI, published on Sunday, together with the energy and financial crisis at home.
At home, India reports the lower active coronavirus cases since February 26 whereas the virus-led fatalities also dropped by 251 versus 446 reported the previous day. It’s worth noting that the firmer COVID-19 vaccine jabbing in India has negatively affected the virus woes but the economy struggles to overcome the pandemic-led economic hardships and the looming fears of power cuts, which in turn doesn’t allow the Reserve Bank of India (RBI) to remain supportive of the easy money policies.
It should be noted that October’s IHS Markit PMI for India battle fears of firmer oil prices of late. Moving on, US ISM Manufacturing PMI, expected 60.4 versus 61.1, may entertain intraday traders ahead of the key Wednesday.
A three-week-old falling trend channel formation challenges USD/INR bulls between 75.05 and 74.55. Adding strength to the channel’s upper line is the 20-DMA while bearish MACD signals keep sellers hopeful.
Additional important levels
|Today last price||74.914|
|Today Daily Change||-0.0014|
|Today Daily Change %||-0.00%|
|Today daily open||74.9154|
|Previous Daily High||75.0324|
|Previous Daily Low||74.7825|
|Previous Weekly High||75.1736|
|Previous Weekly Low||74.7536|
|Previous Monthly High||75.651|
|Previous Monthly Low||74.0821|
|Daily Fibonacci 38.2%||74.937|
|Daily Fibonacci 61.8%||74.878|
|Daily Pivot Point S1||74.7878|
|Daily Pivot Point S2||74.6602|
|Daily Pivot Point S3||74.5378|
|Daily Pivot Point R1||75.0377|
|Daily Pivot Point R2||75.1601|
|Daily Pivot Point R3||75.2877|
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.