Rupee strengthened in early trade due to heavy dollar buying in anticipation of heavy capital inflow by foreign funds buoyed by the announcement of the Government's 100-day agenda. U.S. Dollar was relatively unchanged against most pairs as the large moves seen on Wednesday night were consolidated. The major move seen in the market was the GBP/USD which fell aggressively after rumors spread through the market of PM Brown possibly resigning. Weekly Jobless Claims improved to 621K vs. 625K. Crude Oil finished down $2.69 to finish the day at $68.81 a barrel. Looking ahead for May Non Farm Payrolls are forecast at -520K vs. -539K. The May Unemployment rate is forecast at 9.2% vs. 8.9%.
Technical Outlook:
USDINR is expected to trade in a narrow trade for the day. With the trading range between 46.90-47.22 levels for the day. Good support is seen at 46.78 levels and key resistance is seen at 47.32 levels. Stochastic is trending down and the currency is seen on trading above the moving averages but tight bollingers shows a narrow trade.
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