The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Indian economy posted yet another lower than expected GDP this quarter, making 2012 the worst year in the past decade in terms of economic growth. It is strange to consider a 5.3% GDP weak, but India requires an estimated 6% growth to match their increasing population size.
The Government has set a double digit growth target, and current figures hardly passed the halfway mark.
Despite this, market appears to ignore the disappointment, with SENSEX keeping most of the gains today, and USD/INR now trading back at pre GDP announcement levels.
5 Min Chart
Market could be more forgiving to India missing their mark when the rest of the world are struggling to avoid publishing red figures. Also noteworthy is the fact that risk sentiment globally is still riding high, with DOW breaking 13,000 and HSI 22,000, encompassing the Risk On sentiment the rest of the world is feeling on Cliff Deal optimism. It is the same sentiment that is weakening USD and strengthening INR despite the lower than expected GDP.
Daily Chart
Daily Chart shows a significant change of direction as USD/INR drop below 54.7 support/resistance, looking to test previous swing low in Jul 54.15. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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