It should be noted that the RBI’s 0.50% rate hike couldn’t impress the INR bulls amid broad fears of inflation and recession, especially tied to Asia amid the US-China tussles over Taiwan. We need to keep an open mind.” On the same line was Fed Governor Michelle Bowman who said, “Fed should consider more 75 basis-point interest rate hikes at coming meetings in order to bring high inflation back down to the central bank's goal.” The policymaker also added, “50 bps increase is definitely in play. Further, the Unemployment Rate also inched lower to 3.5% compared to 3.6% expected and previous readings.įollowing the data, San Francisco Fed President Mary Daly said during the weekend that the Fed is far from done in combating inflation.
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That said, the headline Nonfarm Payrolls (NFP) rose to 528K versus 250K expected and 398K upwardly revised prior. The odds of the Fed’s aggression jumped after the strong US jobs report for July. Further details suggest that Exports increased by 18% compared to 15% expected and 17.9% prior whereas the Imports eased to 2.3% compared to 3.7% expected and 1.0% prior.Įlsewhere, the interest rate futures hint at the 73% chance of the Fed’s 75 basis points (bps) rate hike in September. That said, the headline Trade Balance rose to $101.26B versus $90B forecasts and $97.94B. The black gold’s latest rebound could be linked to the firmer China trade numbers.Ĭhina’s trade numbers for June marked upbeat results with the Exports rising the most in the year. WTI crude oil prices extend the previous day’s rebound from a six-month low towards $89.00 heading into Monday’s European session. Also underpinning the Indian rupee (INR) pair’s run-up is the recently firmer oil prices and the market’s fears that the Reserve Bank of India’s (RBI) rate hike appears less impactful.
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USD/INR prints a four-day uptrend around 79.48 as the US dollar cheers hawkish Fed bets during early Monday morning in Europe. US CPI on Wednesday, India CPI on Friday will be crucial for short-term directions.Recovery in oil prices test pair sellers cheering hawkish RBI moves.Fed rate futures signal 73% chances of 0.75% rate hike in September after upbeat US jobs report for May.USD/INR takes the bids to print four-day uptrend, renews daily high of late.