Indian Rupee strengthened past 51 per dollar boosted by firmer Asian stock markets and a weakening dollar U.S. Dollar in a major market event the FOMC made the announcement that they would be buying $300bn in US Treasuries and $750bn mortgage backed securities. They maintained the Interest Rate at 0-0.25% whilst CPI (Feb) gained 0.4% as expected. The USD was crushed after the FOMC announcement dropping over 2% across the board. Looking ahead, Weekly Jobless Claims are forecast at 650K vs. 654K previously. Philly Fed (March) forecast at -38 vs. -41.3.
Technical Outlook:
USDINR chart pattern shows the movement in a narrow band with the trading range between 50.50-51.15 levels. support is seen at 50.40 and key resistance is seen at 51.20.Stochastic is seen trending down and the currency is also trading below the moving averages confirming a downward correction.
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