Market Wrap

"Details create the big picture" 

US Durable goods orders fell 4.50% to $ 272.3 bn from a downwardly revised $ 285.2 bn. 13.30% fall was reported in new orders for transportation equipment driven by sharp fall in New orders for nondefense aircraft and parts which declined a whopping 54.60%. The core durable goods order which excludes transportation increased 0.7 %. Non defense capital goods order excl aircraft orders , a proxy for business investment, rose 0.80% mom. 

Pending home sales data, a monthly measure of homes under contract but not yet closed, rose 8.10% following a revision to Dec number to 1.10%.

The data did not change the Fed fund pricing. Bond yields came off highs which appears more on positioning and month end flows rather than any catalysts. 

In the week ahead, there are no meaningful catalysts to drive USD price action higher barring the US PMI numbers this week. Hence this week, could see consolidation or a minor pull back across USD index and Rates.

India will release the Q3 GDP data with consensus est calling for a reading of 4.60%. INR Liquidity has moved into marginal deficit with LAF injection to the tune of Inr 28k crore. Liquidity injected through O/S Repo operations is 91,500 crs while amount in SDF stood at 64k crore. Durable liquidity as on 10th Feb was 162K crore. WAR ticked higher to 6.64% yesterday.