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MONDAY O9TH JUNE 2025 AT 0830 IST

        EUR 1.1394 GBP 1.3521 JPY 144.85 AUD 0.6491 CAD 1.3690 GOLD $ 3309.64 CRUDE 64.58

DOLLAR ADVANCES AGAINST PEERS AFTER STRONG US ECONOMIC DATA

The dollar rose against major currencies at the close this past week after data showed better-than-expected U.S. jobs growth in May despite a slowdown from the previous month, suggesting the Federal Reserve might wait longer to cut interest rates.  The numbers are stronger overall and now good news is bad news because the 10-year yields went up so the rate cuts are not going to come.  The U.S. currency registered its second straight weekly gain against both the yen and franc, but it was still down about 8% year-to-date and about 9% year-to-date, respectively, against both currencies.  The dollar has been weighed down by uncertainty from President Donald Trump's tariff policies and the prospects of negotiations with trading partners including China, the deficit spending and tax bill being considered in the U.S. Senate after it passed the House of Representatives, and the trajectory of recent economic data. The dollar index closed higher at 99.19 against its low of 98.65 on Friday.  TECHNICAL SUPPORT/RESISTANCE INTRADAY FOR THE USD/JPY: 144.00 - 145.50

EUR/USD DROPS BELOW 1.1400 AFTER US NFP DATA

EUR/USD lost its traction and traded below 1.1400 at the close this past week.  The pair struggled to build on the ECB-inspired gains as the USD rose after better-than-expected Nonfarm Payrolls reading for May. The European Central Bank (ECB) announced a 25 basis points (bps) cut following the June policy meeting on Thursday.  While responding to questions in the post-meeting press conference, ECB President Christine Lagarde noted that they might be approaching the end of the current policy cycle. Markets took that as a sign that the ECB could be done with rate cuts and the Euro gathered strength against its rivals with the immediate reaction.  The single currency which had hit a six-week high of $1.1495 on Thursday closed the week lower at $1.1394.  TECHNICAL SUPPORT/RESISTANCE INTRADAY FOR THE EUR/USD : 1.1350 – 1.1425

STERLING ENDS WEEK HIGHER WITH SPENDING PLANS IN FOCUS

Sterling finished the past week higher supported by a UK economy largely resilient in the face of global turbulence, although investors will be monitoring the government's spending plans.  The pound had gained about 0.6% this past week, strengthened by data that showed UK services sector activity expanded more than expected.  The currency was also boosted by relief Britain was spared from further U.S. tariffs on steel and aluminium following its deal with Washington last month.  A recent gilt auction indicated healthy demand for UK debt, but finance minister Rachel Reeves' spending plans this week could be the next test.  Most of sterling's gains this year have resulted from a broadly weak U.S. dollar as investors price in the risk that President Donald Trump's erratic policymaking could result in a U.S. recession that could spill over to the rest of the world.  TECHNICAL SUPPORT/RESISTANCE INTRADAY FOR THE GDP/USD: 1.3475 – 1.3550

RUPEE ENDS HIGHER AS RATE-CUT BOOST FOR EQUITIES BLUNTS DOLLAR STRENGTH

The Indian rupee strengthened modestly on Friday as the Reserve Bank of India's steepest rate cut in five years boosted local equities, helping the currency eke out a gain even as the dollar firmed against major peers.  The rupee closed the past week at 85.6250 against the U.S. dollar, up from its close at 85.79 in the previous session. However, for the week, the rupee had declined by 0.2%.  The Reserve Bank of India (RBI) cut its key repo rate by 50 basis points and slashed the cash reserve ratio (CRR) for banks as low inflation gave policymakers room to focus on supporting growth.  India's benchmark equity indexes, the BSE Sensex and Nifty 50 rose by about 1% each on Friday, posting their best one-day gain in two weeks as the rate cut fuelled domestic growth expectations.  TODAY,  TECHNICAL SUPPORT/RESISTANCE INTRADAY FOR USD/INR: 85.40– 85.80.