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* The greenback has managed to bounce off its two-month lows on Friday, consolidating around the 91.20 level, as a shift in risk appetite favoured safe-haven flows while the overall outperformance of the US economy relative to the rest of the world exacerbated this buying spree. The US economy advanced at an annual rate of 6.4% in the first quarter of 2021, reflecting the continued economic recovery, with recent data, including upbeat personal income and spending figures, pointing that way. The Federal reserve also painted a rosier picture of the economy but noted it was too early to consider rolling back its emergency support.

* GBP/USD eased from highs Thursday, but looks set for a third-straight weekly win underpinned strong recovery in the UK, but the Scottish elections next week pose a risk. But voters across Scotland will head to the polls on May 6 that could lead to a referendum on independence that could spark a wobble in the GBP. If the Scottish Nationalist Party wins an overall majority in the 6 May Scottish elections, pressure for a referendum on independence will intensify, which could cause some GBP underperformance on the crosses.

* The Japanese yen is in negative territory on Thursday. In the North American session, USD/JPY is trading at 109.03, up 0.41% on the day. When Powell was asked specifically about tapering, he replied that it was too early to have a conversation about that. This sent US yields lower, dragging down the US dollar. Turning to Japan, there is a dump of economic data later on Thursday and early Friday.

Technical indicators (Daily):

* RSI- 46.6748

* MACD- 0.2633

* MOVING AVERAGES (20,50,100)- (74.6321/73.5536/73.3462)

USDINR TECHNICAL CHART

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