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THURSDAY USDINR OUTLOOKS :- USDINR FIRM, CENTRAL BANK MOVE, OIL UP ON DEMANDS!!

USDINR

USDINR is trading around all-time higher levels, We are expecting the pair to commence Thursday session between 77.70 -77.80 levels after yesterday's RBI hike interest rate by 50 bps. Following the ECB announcement, investors will get a read on U.S. inflation on Friday in the form of the May consumer price index (CPI).


  • On Wednesday, The Reserve Bank of India's key interest rate was raised by 50 basis points as widely expected, the second hike in as many months, in a bid to cool persistently high inflation in Asia's third-largest economy.


THE CENTRAL BANKS


The Bank of Japan remains one of the few global central banks to maintain a dovish stance while others have adopted tightening policies of hiking interest rates to combat inflation.


The European Central Bank (ECB) is expected on Thursday to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.

THE OIL

On Thursday, Oil prices held near 13-week highs as underpinned by robust demand in the world's top consumer United States while demand is expected to rebound in China as COVID-19 curbs across major cities are relaxed.


  • Brent crude futures for August nudged up to $124.30 a barrel, while U.S. West Texas Intermediate crude for July was at $122.17 a barrel.



USDINR TECHNICAL

Day Trend: - BUY ON DIP (Short Term)

Weekly Trend: - HOLD

INTRADAY RANGE – 77.96 (77.82 – 77.68) 77.54

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