Daily Digest Market Movers: Indian Rupee recovers, but the potential upside seems limited

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  • Importers have been aggressively purchasing the US Dollar to benefit from a relatively lower rate of crude oil prices in recent weeks, according to forex traders.
  • US Gross Domestic Product (GDP) grew at a 2.8% annualized pace adjusted for seasonality and inflation from 1.4% in the previous reading, exceeding forecasts of 2%. 
  • US Initial Jobless Claims for the week ending July 20 increased by 235K, compared to the previous week of 245K, less than the expected 238K. 
  • US Durable Goods Orders dropped by 6.6% MoM in June from a 0.1% increase in May, below the consensus of 0.3%. Meanwhile, Core Durable Goods ex Transportation rose by 0.5% MoM in June, up from a 0.1% decline and better than a projection of 0.2%.
  • Traders have priced in 92.8% odds that the Fed will maintain its benchmark interest rate between 5.25% and 5.50% at its upcoming July meeting next week, according to the CME FedWatch Tool

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