USD/INR Price News: Indian rupee looks to fill the bullish opening gap ahead of NFP
- USD/INR stages a V-shaped reversal from six-day lows.
- US-China trade talks, Thursday’s oil-price drop boost the INR.
- 75.80 area is critical for recovery to sustain, eyes on US NFP.
USD/INR is making recovery attempts above 75.50 in the European session, having reached the lowest levels in six days at 75.29 in the opening trades.
The spot witnessed a 36-pips bearish opening gap on Friday before staging a sharp V-shaped recovery in the last hours. At the time of writing, USD/INR sheds 0.29% to trade at 75.56, trying hard to fill the gap lower.
The steep losses in the spot could be associated with the slump in the US Treasury yields overnight after markets started pricing-in the Fed to steer the rates into negative territory by early 2021. Negative yields dragged the US dollar broadly lower to fresh multi-day lows.
On the INR-side of the story, the retracement in oil prices from monthly tops boosted the sentiment around the rupee. The US oil tumbled on Thursday, as the early bounce was erased after Rystad Energy projected global oil demand to decrease 10.9% in 2020.
In the day ahead, the spot could continue struggling with its recovery, as investors await the US NFP data for a fresh direction. The payrolls are likely to plunge by over 20 million in April, courtesy of the coronavirus pandemic induced lockdown restrictions.
Technically, USD/INR sellers are likely to lurk around 75.80, the confluence of the 5 and 10-DMA on the road to recovery. A break above the latter will expose the 20-DMA barrier at 76.08. If the bulls lose momentum, the multi-day low of 75.26 could be back in sight, below which 75.00 (round figure) will be on the bears’ radar.
USD/INR additional technical levels