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FUNDAMENTALS OF CURRENCY:

* WEEK AHEAD: G7 finance ministers reached a historic agreement on Saturday to reform the global tax system ahead of the highly anticipated G7 leaders' summit on 11-13 June 2021. Elsewhere, monetary policy meetings in the Eurozone, Canada and Russia will be keenly watched, as well as updated GDP figures for Japan, the Eurozone, the UK and South Africa. Other important releases include US and China inflation and foreign trade data; US and Australia consumer sentiment; Germany and India industrial output; and Japan current account.

* The British pound rebounded towards $1.42 Friday, moving closer to a three-year high of $1.425 hit earlier this week, as the dollar fell on the back of a weaker than forecast US jobs report and as investors digested upbeat economic data from the UK. A PMI survey showed the UK construction output growth in May was the strongest since September 2014; while new car registrations jumped 674.1%, but were still well below pre-pandemic levels.

* The euro rebounded slightly above $1.215 Friday, as a weaker-than-expected US jobs report weighed on the dollar. In other economic news, Eurozone retail sales dropped more than expected in April; while construction output in May expanded slightly as growth in Italy and France was offset by a steeper contraction in German activity. The euro hit an over four-month high of $1.2265 last week amid hopes of a strong economic recovery in Europe helped by an acceleration in COVID vaccinations and a gradual re-opening of the bloc's economy.

Technical indicators (Daily):

* RSI- 42.298

* MACD- -0.2613

* MOVING AVERAGES (20,50,100)- (73.0094/73.7403/73.2785)

USDINR TECHNICAL CHART

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