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D-Day

* The U.S. dollar gained against the yen and the euro today but pulled back from its highs of the day with investors betting on a slower pace of Federal Reserve interest rate hikes going forward.

* The dollar index was higher after falling 4% last week, marking its biggest weekly drop since March 2020, after data showing U.S. consumer prices rose less than expected in October and prompted bets forslower hikes.

* While the greenback appeared to benefit earlier on Monday from hawkish investor readings of weekend comments from Fed Governor Christopher Waller, it lost some ground as the session wore on as investor hopes for slower hikes were renewed by Fed Vice Chair Lael Brainard's comments on Monday.

* Sterling fell ahead of British Chancellor Jeremy Gaunt's autumn statement on Thursday when he is expected to set out tax rises and spending cuts. The pound was down 0.55% at $1.1770, having risen 4% in the previous two sessions, touching on Friday its highest level since late August.

* Cryptocurrencies remained in turmoil after the fall of FTX. The crypto exchange's token was down 7.8% on the day at $1.308, representing a 95% drop on a month-to-date basis.

* China's onshore yuan rose to nearly a two-month high against the dollar, coinciding with its central bank's official guidance and a broad lift in Chinese marketsentiment on moves to help its embattled property sector and a decision to ease some of the country'sstrict COVID-19restrictions.

* Support for the USDINR Nov Fut is seen at 80.16, which happens to be 200 days EMA

Technical Observations:

* USDINR Nov Fut hit the low of 80.58 and recovered towards the 81.32 levels in yesterday’s session.

* Pair has been forming lower tops and lower bottoms on the daily chart

* Near term resistance is seen at 82.03 in Nov Future

* 200 days EMA support is placed at 80.16 odd levelsin November Future

* In yesterday’s session, pair has closed with bullish “Piercing line” candlestick pattern on daily chart, which could extend yesterday’s pullback

* However, considering the overall trend, positional view remains to sell on rallies with the stoploss of 82.50

* We expect, USDINR Nov fut to reach a downside target of 80.16 in short term

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