Globally,
US equity market gained another 2% after the release of better than expected
CPI inflation. US CPI released at 0.6% m-o-m basis against previous reading of
negative 0.1%. On the other hand, Euro continued to trade with biddish bias
against its US counterpart as EUR/USD pair surged to 1.1420 levels.
Technically, EUR/USD pair has multiple resistance b/w 1.1430-1.1450. We can
initiate short EUR/USD position near 1.14 handle with a stop of 1.1450 and a
target of 1.1270. EUR/USD pair will take further cues from ECB meeting,
scheduled tomorrow.
On the domestic front, the expectations of further easing by RBI have reduced after the release of stronger CPI inflation in June. CPI inflation spiked to 6.09% in June-20 against 5.91% inflation in March-20. It is noteworthy that government had not declared CPI data for April and June. Interestingly, perishable food inflation i.e. vegetable inflation fell to 1.86% and fruit inflation contracted by 0.68%. Overall food inflation remained elevated near 7.87% due to surge in prices in non-perishable category. USD/INR pair is trading at 75.30 levels. USDINR pair has resistance near 75.45-75.50 levels and support at 75.25 levels.
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