Evening Report-Jun 24.

The Rupee gained marginally but was still trading near one-month lows as the dollar lost ground against the global majors and shares continued to trade choppy.Indian Unit gave a low of 48.35 but shed some of its gains and closed at 48.51 levels for the day.U.S. durable goods orders are expected to have fallen by 0.9% in May after a 1.7% improvement the month prior. It would be the second decline in the last two months and a sign that companies remain cautious despite signs of a recovery. The biggest obstacle for a rebound in growth may be the psychological impact on businesses and consumers as they may remain tepid for sometime. Therefore, considering that prospect we could see dovish comments from Fed Chairman Bernanke after today’s policy decision. The FOMC is expected to keep the Feds Fund rate at 0%-0.25% as downside risks remain for the economy. A dour outlook from the central bank could spark risk aversion and dollar support. Conversely there are enough signs that a recovery is imminent with the rate of job losses slowing to 345K from 504K Euro has started to trade lower after the OECD’s call for an ECB rate cut but the single currency has resumed its bullish momentum. The international economic organization has forecasted that growth will contract by 4.8% and become flat for the economic union. Meanwhile, the Euro-Zone current account saw its deficit shrink from -7.0 to -5.9 billion as the tradable goods balance swung to a surplus. Also crossing the wires was mixed Italian data with consumer confidence rising to an 18 month high of 105.4, while retail sales unexpectedly fell by 0.4%. The Organization for Economic Cooperation and Development said that the central bank should lower rates toward zero and keep them there until the economy is revived. Pound rose to as high as 1.6596 as European equity markets followed Asia’s lead with a strong open. The sterling began to trade heavy after the OECD report but has started to regain its footing and is looking to test the intra-day high. The U.K. economy’s growth forecast was downgraded to -4.3% from -3.7% as the country’s housing slump continues to be a weighing factor. The 6/3 high of 1.665 remains as formidable resistance and although we could see a test of the level, a sharp reversal remains a possibility. Japanese yen weakened against higher-yielding currencies after the Organization for Economic Cooperation and Development forecast the world’s leading industrialized nations will expand next year.