HALISTER1: USD/INR May Consolidate Between 50-DMA, 100-DMA on GDP: Analysis

USD/INR May Consolidate Between 50-DMA, 100-DMA on GDP: Analysis

(Bloomberg) -- USD/INR may trade between 50- and 100-DMA near term if India’s 1Q GDP matches est., Bloomberg strategist David Finnerty writes.
  • India 1Q GDP is forecast to rise 7.5% y/y compared to 7.3% in 4Q, according to median est. in Bloomberg survey; data due May 31 at 5:30 pm local time
  • If GDP matches or beats est., it would confirm economy continues to expand at a growing pace, which should support INR and help offset recent hawkish comments from U.S. FOMC members
  • USD/INR’s slow stochastics have turned bearish as they retreat from overbought territory with initial support at 50-DMA (currently 66.7236); pair closed at 67.035 on Friday
  • USD/INR’s decline maybe halted if U.S. jobs data beats forecast, raising probability of a Fed hike this summer
    • U.S. May non-farm payrolls due June 3, est. 160K vs prev. 160K
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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