Looking at Euro levels French election results seem to be a
non event. On Friday night post NFP commodities registered a bounce which
moderately improved risk sentiments. Improvement in oil prices and other
commodities are reflected in Asian equities today except Shanghai stock
markets. Shanghai stock markets are near critical support levels and below 3000
they would threaten for a 10% fall. In contrast the US NFP prints a healthy
picture of the US economy and is reflected in DM yields. Commodities and Chinese
stocks are the last remaining doubts on an otherwise pro risk global macro
setting.
USDINR 1m NDF is trading 5.5p left. Equities are seeing
withdrawals on a daily basis while debt market inflows continue. I would think
that debt investments in India currently are driven by long INR bets. KRW has
appreciated mildly over Friday. The uptick in commodities has calmed the long
USDINR sentiment on Friday which happened in spite of a large 2000 cr debt
inflow. CMP 64.21, Range 64.15-64.32.
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