Tuesday 17 December 2019

Currency Market Update 17-Dec : US dollar index near key supports 97.00


GBP/USD pair corrected more than 1% amid news that UK will not extend the trade negotiation beyond Dec-2020. Correction in Cable was further supported by soft UK manufacturing PMI numbers, which released at 47.4 against previous reading of 48.9. On other hand, US dollar index was able to hold on to a key support of 97.00, after release of US manufacturing PMI numbers. US manufacturing PMI released at 52.5, making it only major economy with an above 50 PMI manufacturing reading.  

On domestic front, WPI inflation rose by 0.6% amid spike in food prices. WPI food inflation surged to 71 month high levels of 11.1%. India’s 10 year bond yield is trading flat at 6.77% after switch auction of government securities. USDINR pair opened the session on a flat note at 70.95 against previous close of 70.98. USDINR pair has support at 70.75-80 levels, first resistance at 71.05 levels and second resistance at 71.30 levels. Range for the day 70.85-71.15.

No comments:

Post a Comment