- USD/INR refrains from further upside amid recently rising odds for the Fed’s increased rate cut.
- The exodus of foreign funds from Indian stocks weighs on the INR.
- The US Durable Goods Orders and GDP can entertain traders ahead of the key next week.
Having registered the first negative daily closing in a week the previous day, USD/INR remains below 50-DMA while making the rounds to 69.00 during early Thursday.
While growing speculations over the US Federal Reserve’s extreme rate cut have again started denting the US Dollar (USD), the exodus of foreign funds from the Indian equity markets, coupled with the crude price recovery, weigh on the Indian Rupee (INR).
According to a dealer with an Indian state-run bank, “Foreign outflows from Indian equities are not slowing down, and in the next few sessions, the pair will receive support from month-end dollar demand.”
Although today’s Durable Goods Orders from the US is likely to offer an intermediate direction to prices, the USD’s counter strength following the European Central Bank’s (ECB) decision and second quarter (Q2) Gross Domestic Product (GDP) data may entertain momentum traders ahead of the key next week that comprises the Fed meeting and the US-China trade negotiations in Beijing.
Technical Analysis
Despite 2-week old ascending trend-channel, 50-day moving average (DMA) limits the pair’s near-term upside around 69.22, a break of which can further accelerate the moves to channel-resistance near 69.35. Alternatively, a downside break of 68.84 can trigger fresh declines targeting 68.60 and 68.25 numbers to the south.
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