Indian Prime Minister Modi's landslide re-election has sent Indian stocks soaring to new record prices, as well as boosting other Asian and global stocks, as the Indian rupee posts gains.
➡️ The Indian government, led by Prime Minister Narendra Modi, was re-elected for the third consecutive term with a landslide victory. This result was welcomed by the markets, sending the Indian stock index Nifty 50 to a new all-time high, in line with the trend of recent days and weeks. However, towards the end of the day, the index gave up much of its earlier gains, probably due to the “buy the rumor, sell the fact” principle. The Indian rupee also advanced, leading the USD/INR currency pair to trade at the new 2-month low price today.
➡️ In the Forex market, the strongest major currency since the Tokyo open is the Swiss franc, while the Japanese yen is the weakest major currency, putting today at the center of attention the CHF/JPY currency cross. Also the NZD/JPY cross advanced bullishly, reaching a new 16-year high. Yesterday we noted the potential for some Yen crosses on the Long side in our weekly Forex forecast. The question regarding the Japanese yen is whether there will be further intervention from the Bank of Japan if the currency continues to weaken.
➡️ The precious metal silver is falling to threaten the key support level at $29.85. A bullish bounce could represent a buying opportunity, especially for trend traders. Alternatively, if the price makes an extended break below that level, it could be a very bearish signal.
➡️ US Trailing Manufacturing PMI and ISM Manufacturing PMI data will be released today.
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