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FUNDAMENTALS OF CURRENCY:

* The dollar index broke above the 92.30 area on Friday, a level not seen in over two months, and notching its best week since March 2020 following a surprisingly hawkish tone from the Fed. Such market move marks a dramatic reversal from an over four-month low of 89.30 touched in late May. On top of that, comments from James Bullard, president of the St Louis Fed, about the prospects of an even earlier interest rate increase have supercharged existing upward momentum for the greenback.

* The Eurozone current account surplus widened sharply to EUR 31.4 billion in April of 2021 from EUR 12.1 billion in the same month of the previous year. The goods surplus jumped to EUR 26.4 billion from EUR 11.2 billion, the services surplus more than doubled to EUR 10.4 billion from EUR 3.9 billion and the secondary income gap fell to EUR 11.7 billion from EUR 12.4 billion. On the other hand, the primary income surplus narrowed to EUR 6.3 billion from EUR 9.5 billion.

* The British pound depreciated towards the $1.38 mark, hovering around its weakest level since early May, amid a stronger dollar and as investors digested a batch of economic data released this week. Also, the labor market consolidated its recovery, with the number of employees on company payrolls rising at a record pace in May and wages growing at their fastest since 2007 in the year to April. Elsewhere, a resurgence in the number of coronavirus cases in the UK, the ongoing post-Brexit tensions over the Northern Ireland protocol, the disappointing UKAustralia trade agreement and a delay in the UK's lockdown easing plan have also weighed on sentiment.

U S DOLLAR INDEX

Technical indicators (Daily):

* RSI- 69.2185

* MACD- 0.1605

* MOVING AVERAGES (20,50,100)- (73.108/73.658/73.321)

USDINR TECHNICAL CHART

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