Trump’s tax cut announcement lacked clarity on
implementation and therefore was largely ignored by the markets. The new
healthcare bill is also yet to be passed by the Republicans themselves.
The directional move in UST Yields and US Dollar might be decided in the
next 2 days as ECB sets the Euro tapering path today and US GDP tomorrow (where
a lower print can change rate hike expectations). On the debt ceiling impasse,
news flash suggest that the government will get a 1 week period to work out
plans and to temporarily avoid shutdown.
USDINR 1m NDF is trading 5.5p left as compared to 9p left
yesterday morning. EM currencies have mildly depreciated over yesterday.
Nationalized banks bought USDINR aggressively yesterday from 63.95 and have
been seen on bids today as well. Equity markets in Asia are negative to flat
although technically European, US and Indian equities look poised to move
higher. Upticks in USDINR could be sold as we can see more inflows over the
last 2 days of the month. CMP 64.09, Range 64.15-63.95.
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