US CPI Inflation Data Highlights and Market Expectations


New Delhi, India

September 14, 2023


The recent release of US CPI Inflation data can had a notable impact on the USD/INR pair in today’s session. In August, rising gas costs drove US inflation to 3.7%, causing an initial depreciation of the US Dollar. This shift reflects market sentiment, as investors don’t anticipate the higher-than-expected annual headline inflation to significantly affect upcoming Federal Reserve (Fed) monetary policy decisions.

Support levels at 83.00 and 82.80 can be noticed in today’s session. Additionally, anticipation can be made on potential resistance at 83.30, with the possibility of further movement to 83.50 during today’s trading session.


GBP/INR: Stability Amid UK Labor Data

GBP/INR can achieve stability in today’s session, with potential support levels at 103.50 and 103.20 can be observed. This stability might comes in the wake of the UK labor market data, which revealed a higher unemployment rate of 4.3% in the three months ending in July, up from 4.2% in June. Notably, UK wages, excluding bonuses, surged by 7.8% year-on-year in the same three-month period, posing potential concerns for the Bank of England (BoE).

Resistance levels for GBP/INR could be observed at 104.00 and 104.30 as traders await further developments.


EUR/INR: Anticipation for ECB Policy Decision

Traders in the EUR/INR market are eagerly awaiting the European Central Bank (ECB) policy decision, scheduled for later this week. The anticipation is heightened as the ECB foresees continued inflation exceeding 3% in the 20-nation eurozone next year. This expectation strengthens the case for a tenth consecutive interest rate increase.

Early market indications suggest potential support levels at 89.00 and 88.80 for EUR/INR, with resistance levels anticipated at 89.30 and 89.50.


JPY/INR: Market Dynamics for Japanese Yen

The JPY/INR market can experience early market pressure as it went down yesterday. Support levels are initially indicated at 56.50 and 56.20, with potential resistance at 57.00 and 57.30 for this currency pair.

These dynamics are influenced by factors such as rising US bond yields and oil prices, which can exert both positive and negative effects on JPYINR, particularly in the context of USDINR’s trading patterns.



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