« back to moneycontrol
« back to moneycontrol
23 May 2022
Monday
Fear of Stagflation can dent market sentiments .
Indian rupee continues to trade weaker as market sentiments seems too be under pressure over increasing worries of surging inflation, along with weaker outlook for economic growth. Adding to the selloff has been the war in Ukraine, which has added to spikes in oil and other commodity prices taking local unit further lower. The rupee, had dropped to a record low of 77.80 earlier this week, a 1.5% fall against the dollar in this month itself amid aggressive interest rate hike from the Fed in their latest meetings. Domestic equity markets too are under radar and are feeling heat of global sentiments. However, lending rate cuts in China has triggered risk appetite amid sell off in USD against other major currencies towards the end of the week. Both the headline indexes ended their six week losing streak and has manage to hold on their gains.
On international front, US retail sales for April showed a healthy spending style of the US consumers. Headline sales were up a healthy 0.9% m/m. Stripping off inflation efforts it still remains high at 0.9% m/m. Revisions to the prior month were also positive, suggesting consumer expenditures ended last quarter on a much firmer footing than previously thought. On other hand, EURUSD made a sharp recovery last week, but it was not lasting through the end of the week. It hit a high of 1.0607 before losing some ground. Members of the ECB’s Governing Council had been on the wires announcing their willingness to hike rates as soon as in July. Financial markets are now pricing in a 52% chance of a 50 bps hike at the beginning of the third quarter, up from 40% in the previous week. Sterling too was able to outperform dollar, triggered by a combination of strong UK inflation data and hawkish comments from BoE Governor in his testimony. BoE Governor earlier indicated that the BOE will continue to fight inflation which triggered an initial rally.
Crude oil prices are trading higher around 3% higher from the previous week as supply side worries outweighed economic growth concerns. The Risks remains tiled to the upside due to the planned ban of Russian oil by the EU. In China, Shanghai did not signal any change to its planned end of a prolonged city-wide lockdown on June 1 even though the city announced its first new COVID-19 cases outside quarantined areas in five days.
Trading currency involves the right combination of awareness, preparation and action. Over the last thirty years, Mecklai Financial has equipped corporate treasury managers and CFO’s in India’s with actionable advice to optimally manage their market risk .Mecklai will give you the right information, analysis, and updates for traded currency future pairs.
The service will highlight potential trades in currencies with the trading calls rendered through SMS for timely execution. The SMS will mention entry price range, stop loss levels and the expected target zones.
Recommendations are provided for short term and positional trading with entry level and stop loss.
The weekly roundup report will provide detailed insights on the current and future trends in currencies and related commodities like gold and oil. Additionally, it will outline the trend and trading opportunities in the week ahead.
The weekly mailer gives you a smart perspective on how global and domestic events will impact your currency trading with snippets on gold and oil. In addition the charts and the technical levels for each of the four currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) give you firm levels to enter and exit positional trades with optimum risk.
As a new investor in this market you may find Currency trading appear intimidating, but Mecklai will help you break through the layers of jargon and simplify things the various terms for you.
All trades recommended are tracked on a weekly basis so you can see the impact directly on your balance sheets.
Their CEO, Jamal Mecklai, is an authority on all matters market and has been appointed to RBI committees to recommend measures on the local foreign exchange markets and managing commodity risk. He is also consultant to the World Gold Council and the Forwards Markets Commission and a frequent contributor to the media, both print and electronic.
Vision:
To provide clients with unparalleled knowledge of markets and use Mecklai’s experience to enable companies and individuals make optimal use of markets.
FULL REFUND TRIAL PERIOD