Last week rupee depreciated by 0.5 percent despite dollar index weakening by 0.55 percent. Indian CPI for Dec’17 and IIP data for Nov’17 will be announced today. CPI climbed to 17 month high of 5.2 % in Dec’17 and IIP for Nov’17 grew by 8.4%. However, Indian equity market remained positive during the week with a surge of around 1.16 percent in Nifty Index.
The factors driving US dollar down were worries from China likely to stop buying US government bonds. Also, that Donald Trump may end NAFTA trade agreement with its counterparties. Also, US PPI for Dec’17 came in at -0.1 percent against market expectations of 0.2 percent. US CPI came in line with market expectations at 0.1% for Dec’17. In the coming week, building permits data and unemployment claims data will drive the movement for dollar.
USDINR is expected to move sideways in the coming session
EURUSD appreciated by 0.7 percent while EURINR depreciated by 1.25 percent during the same time frame. The grand coalition talks in Germany between Angela Merkel’s conservatives and Social Democrats got finalized today on 12th Jan 2018. Also, the recently released ECB minutes on 11th Jan 2018 said that the Euro region has been growing at a strong pace leading ECB to comment on cutting down the 2.55 Euro monetary stimulus program in 2018. Also, CPI data from the Euro region came in line with market estimates at 1.4% for Dec’17. In the coming week, German PPI and Euro region final CPI will be announced.
EURINR is expected to move depreciate in the coming session
GBP appreciated against the US dollar by 0.32 percent last week. Also, GBPINR depreciated by 0.83 percent during the same time period.
The factors that strengthened GBP during the week were the British secretory travelling to Germany to ensure that UK’s financial industry does not get affected post UK leaves EU. Also, the manufacturing data from UK came in at 0.4 percent for Dec’17 as compared to market estimates of 0.3 percent. The movement in GBP will be influenced by CPI and Retail sales data from UK.AFTER POST CONTENT
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