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Rupee Outlook and Strategy

• US dollar gained strength on surge in US treasury yields and muted global market sentiments. Meanwhile, investors remained cautious ahead of US Fed chair Powell speech to get guidance on central bank interest rate hiking path. Moreover US consumer confidence slipped to 4 month low in November 2022 amid persistent worries about rising cost of living

• Rupee future maturing on December 28 depreciated by 0.13% amid surge in crude oil prices. However, sharp fall was prevented on FII inflows and optimistic domestic market sentiments

• Rupee is likely to depreciate today amid strong dollar and surge in crude oil prices. Additionally, market participants will keep an eye on Fed Chair Powell speech and major economic data from US to get the cues on central bank interest rate hiking path. Meanwhile, optimistic domestic market sentiments and FII inflows may prevent sharp fall in Rupee. US$INR (December) may take support near 81.55 levels. As long as it sustains above this level it may rise to 82.00 levels

Euro and Pound Outlook

• Euro slipped yesterday amid strong dollar and subdued global market sentiments. Meanwhile, inflation in Germany and Spain eased this month lifting investors hopes that the worst of the regions price crisis may soon be over

• Euro is expected to trade with a negative bias on strong dollar and gloomy global market sentiments. Further, market participants will focus more on CPI data from Euro Zone as data from Germany and Spain showed that inflation eased while ECB President Lagarde said on Monday that euro zone inflation hasn’t peaked yet. EURUSD is facing resistance near 1.0400 levels, as long as it sustains below this level EURUSD may slip back to 1.0270 levels. EURINR (December) is expected to trade in a range of 84.50-85.10

• Pound depreciated yesterday majorly on the back of strong dollar and disappointing economic data from Britain. Additionally, murky economic outlook weighed on Pound

• The pound is expected to trade with a negative bias on strong dollar and weak global market sentiments. Further, series of disappointing economic data from the country fuelled the concern over economic health. Additionally, traders will remain cautious ahead of MPC Member Pill speech to get the cues on future rate hike path. GBPUSD is facing strong resistance near 1.2070 level. As long as it sustains below this level pound may slip back to 1.1860 levels. GBPINR (December) is expected to trade in a range of 97.80-98.40

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