The Indian rupee weakened to its lowest in more than two weeks after exit polls showed the ruling Congress coalition was ahead in general elections but would fall short of a parliamentary majority. U.S. Dollar enjoyed a major reversal of direction with sentiment turning overnight. Weak US Retail Sales of -0.4% in April sent US stocks skidding over 2% down. Also dampening sentiment was the commentary from BOE’s King that the risk was skewed to a protracted economic downturn. Looking ahead for Weekly Jobless Claims are forecast at 610k vs. 601k previously.
Technical Outlook:
USDINR is expected to give bearish correction after testing the resistance level of 50.10 levels .With good support seen at 49.65 .Currency is expected to trade in the trading range of 49.70-50.05 levels for the day. Stochastic is trending up but is expected to give a correction as it is in the overbought levels.
No comments:
Post a Comment