Globally,
US equity markets rallied more than 1% after the positive news regarding US-China
phase 1 trade deal. EUR/USD pair is trading flat near 1.1815 levels amid lack
of key economic data from Eurozone and US. USD/JPY pair is trading in tight
range between 105.69-106.10 levels.
On
domestic front, RBI has announced INR 20,000 Cr bond operation twist; RBI will simultaneously
buying long term (2024-2032) securities and selling short term (2020)
securities. It seems that RBI is uncomfortable with spike in India’s 10 year
bond yield, which had rallied to 6.22%. On currency front, partially
convertible rupee witnessed sharp gain on chunky inflow coupled with lack of
volume and peculiar absence of RBI. It is noteworthy that USDINR market depth
has certainly reduced in covid enforced truncated market environment. Thus
accentuating one-off volatile events in rupee markets. Technically, USDINR pair
has given a break-down of contracting triangle formation. USDINR pair has
immediate resistance at 74.50 levels and immediate support near 74.08-10
levels. Intraday range seen as 74.08-74.50
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