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TUESDAY FX OUTLOOKS: - USDINR FORMING BASE, OIL JUMP, DOLLAR UP !!

USDINR

On Tuesday, USDINR likely to commence with firm note between 81.80 – 81.90 levels as dollar inched higher on early Asian after a loans survey revealed that credit conditions in the United States were less gloomy than expected, while the pound flirted with a one-year peak ahead of this week's Bank of England policy meeting.


  • Indian airline Go First seeks urgent bankruptcy protection, lessors step up pressure

  • India says banking system sheltered from wider sector turmoil

  • India govt panel proposes ban on diesel 4-wheeler vehicles by 2027



USDINR TECHNICAL

Day Trend: - BUY

Weekly Trend: - HOLD

INTRADAY RANGE – 82.00 (81.87 – 81.73) 81.60

THE OIL PATH

Oil prices rose over 2% as U.S. recession fears eased and some traders saw crude's three-week slide on demand worries as overdone. A healthy U.S. jobs report for April helped oil to climb by about 4% on Friday even though labour market strength could compel the Federal Reserve to keep interest rates higher for longer.


ASIAN FX

Most Asian currencies moved in a flat-to-low range as robust U.S. labor data fueled expectations that the Federal Reserve will keep interest rates higher for longer, although the dollar weakened amid uncertainty ahead of key inflation data this week.


THE MEXICO MOVE ON DOLLAR

Mexican President Andres Manuel Lopez Obrador gave the U.S. dollar a vote on confidence on Monday after he was asked if a weakening greenback might spur a move to diversify Mexico's foreign currency reserves.

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