The Indian Rupee (INR) has shown resilience and strength at the week’s opening. This positive trajectory follows the US dollar’s decline, influenced by various global and domestic factors. Economists are highly anticipating the key economic data slated for release this week. India’s CPI Inflation and Industrial Production data are headlining Tuesday, transitioning to Wednesday’s WPI data on food, fuel, and inflation. Additionally, critical US economic data, including CPI and Retail Sales, are scheduled for Tuesday and Thursday, respectively. These releases will provide further cues for currency traders.
Consequently, the USD’s recent dip has spurred selling and speculation of a June rate cut following February’s mixed labour data. Meanwhile, India’s economic forecast appears cautiously optimistic. CPI Inflation for February is expected to decrease marginally to 5.02% from January’s 5.10%. However, analysts caution against premature optimism. They highlight the upside risks to food inflation that could prompt the Reserve Bank of India (RBI) to maintain a cautious stance. This approach could potentially favour the INR in its pairing against the USD.
Technical analysis of USD/INR reveals a currency pair confined within a descending trend channel since December 8, 2023. This trend suggests a range between approximately 82.60-83.15. Current indicators point towards a bearish outlook. This is further supported by the pair trading below the 100-day Exponential Moving Average (EMA) and the 14-day Relative Strength Index (RSI) in bearish territory below 50.0. Importantly, the analysis shows immediate resistance near the 100-day EMA and 83.00. This indicates potential support and resistance levels. Any breakout above 83.15 could challenge higher resistance points, potentially altering the current market sentiment.
As the week progresses, market participants are keenly awaiting the release of pivotal economic data. This data is expected to influence currency trading dynamics significantly. Indicators hint at a bearish USD/INR trend. However, policy changes and crucial data releases may significantly influence future currency movements. Technical indicators suggest a focus on policy shifts and impactful data for future currency movements. As always, traders and investors must stay abreast of global economic developments and adjust their strategies accordingly.
Key Points: Stable Above $0.50: XRP maintains price stability above $0.50, indicating investor confidence despite market volatility. Technical Breakthroughs: Recent…
Key Points The UK economy grew by 0.6% in Q1, surpassing expectations by beating forecasts of 0.4%. roduction rose by…
Key Points: Dow Jones gains for 7th day; It has risen by 0.85%, marking its longest gain streak since December.…
Key Points: Rising Oil Prices: Brent crude at $84.33/barrel and WTI crude at $79.26/barrel, a 2% weekly increase. Geopolitical Tensions:…
Key Points: EUR/GBP trades near 0.8600 with key support at 200-hour and 200-day EMAs. BoE held interest rates steady in…
Key Points: GBP/USD Rises to 1.2525 from 1.2445 amid expectations for economic announcements and shifts in UK and US monetary…
This website uses cookies.