- USD/INR snaps two-day uptrend, reverses from monthly high.
- India reports lowest daily jump in coronavirus cases since May.
- September GDP is expected to ease from 20.1% prior, RBI rate hike stays on the cards.
- Fed’s Powell, US data and covid updates are important too.
USD/INR refreshes intraday low to 74.91, down 0.27% on a day while extending the pullback from the monthly top during early Tuesday.
In doing so, the Indian rupee (INR) pair portrays the market’s cautious optimism ahead of the fiscal Q2 GDP of India, as well as receding fears of Omnicron which earlier triggered the market’s rush to risk safety. That said, India’s GDP is expected to ease from 20.1% prior to 8.4%.
“Fast-moving indicators including exports, electricity generation, rail freight and bank deposits showed improving signs of growth momentum in October while vehicle sales, fuel sales and tax collection showed slower growth,” said Reuters ahead of the release.
It should be observed that firmer inflation pushes the Reserve Bank of India (RBI) towards a rate hike but the latest covid outbreak may stop the national bank from doing so if today’s GDP softens more than expected.
Elsewhere, India’s daily covid cases rose 6,990 versus 8,309, per the latest figures shared by Reuters. This marks the Asian nation’s lowest daily count since May 28, 2020.
On a broader front, market sentiment improves amid receding fears from the South African variant of the coronavirus. The reason could be linked to the global policymakers’ rejection of the need for total lockdowns and comparatively better economic conditions than the early pandemic days.
While portraying the mood, the US Treasury yields remain pressured with the headline 10-year bond coupon down three basis points (bps) to 1.50% whereas S&P 500 Futures print mild gains at the latest.
Moving on, India’s Q2 GDP will offer immediate direction to USD/INR prices while US CB Consumer Confidence for November and covid updates, followed by Fed Chair Jerome Powell’s testimony, will be important to watch for fresh impulse.
RSI retreat hints at further pullback from the monthly high surrounding 75.20 towards multiple supports around 74.60-58.
Additional important levels
|Today last price||74.923|
|Today Daily Change||-0.1900|
|Today Daily Change %||-0.25%|
|Today daily open||75.113|
|Previous Daily High||75.1503|
|Previous Daily Low||74.7275|
|Previous Weekly High||75.1025|
|Previous Weekly Low||74.3021|
|Previous Monthly High||75.651|
|Previous Monthly Low||74.0821|
|Daily Fibonacci 38.2%||74.9888|
|Daily Fibonacci 61.8%||74.889|
|Daily Pivot Point S1||74.8436|
|Daily Pivot Point S2||74.5742|
|Daily Pivot Point S3||74.4208|
|Daily Pivot Point R1||75.2664|
|Daily Pivot Point R2||75.4198|
|Daily Pivot Point R3||75.6892|
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.