The EURUSD has come back strongly from 1.4250 and currently quotes around 1.4320 in Asia. Concerns of public finances exist throughout the Asian session while bets are coming at lower levels for Euro. The ECB rate hike possible during July after the monetary policy meeting last week
Chinese inflation data is key to watch which is likely to ease to 5.2% from 5.4% during March, may support high yielder and Euro. Pullback possible till 1.4450-1.45 range as long as it holds the 1.4250 area. EURINR (May MCX-SX) respectively may see pulls toward 64.55-64.60 levels with support at 63.90 marks.
From USDINR point of view, INR has depreciated a tad from morning opening. The May future contract on MCXSX is now around 44.90 levels. Pressure can be felt around 45.00-45.05 levels from exporters. Power Finance Corporation's (PFC) follow on public offer (FPO) may be handy with slight revival from FII flows. USDINR May can be sold on pullback towards 45.00-45.05 range. One can expect a tgt of 44.80.
Pound may see mild recovery tracking Euro while at limited pace. The BOE inflation report is again expected to show rising inflation expectations. BoE cannot go for a rate hike with weak string of weak economic data coming out from the country. Pullback in GBPINR can be expected till 73.75-73.90. Risk is on downside.
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