Monday 9 December 2019

Currency Market Update - 9-Dec :Strong NFP rebounds Dollar


US dollar index recovered sharply to 97.70 after the release of strong US jobs report. US economy added nearly 255k jobs in November and unemployment rate fell to 3.5%, fading any concerns of recession. Consequently, US 10 year bond yield jumped to 1.84% and S&P 500 index to 3145. On the other hand, China trade surplus fell to USD 274 Bn as exports fell by 1.1% and imports increased by 0.3%. USD/CNH pair trading flat at 7.0320 ahead of possible tariff hike deadline of 15 Dec.


On domestic front, 10 year bond yield continued their upward journey amid worsening fiscal deficit concerns. Domestic yield gains should be further supported by spike in US treasuries. USDINR pair opened the session on strong note at 71.30 against previous close of 71.19. USDINR pair has support at 71.10-15 levels and resistance at 71.44-48 levels. Range for day 71.10-71.40. 

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