Sterling pound GBP appreciated against the US dollar by 0.01 percent during the day. Also, GBPINR depreciated by 0.8 percent during the same time period. UK inflation data for Dec’17 announced yesterday came in at 3% which was 0.1 percent lower than Nov’17 of 3.1 percent which helped in the strengthening of pound further. Also, the manufacturing data from UK came in at 0.4 percent for Dec’17 as compared to market estimates of 0.3 percent.
GBPINR is expected to depreciate in the coming session
EURUSD depreciated by 0.02 percent while EURINR depreciated by 0.56 percent during the same time frame. ECB spokesperson commented that will cutting down or winding up the 2.55 Euro monetary stimuli program in Sep’18 if inflation target is reached. Also, the grand coalition talks in Germany between Angela Merkel’s conservatives and Social Democrats got finalized today on 12th Jan 2018. Also, CPI data from Germany came in line with market estimates of 0.6 percent for Dec’17.
EURINR is expected to depreciate in the coming session
Yesterday rupee depreciated by 0.79 percent despite dollar index weakening by 0.64 percent. India’s trade deficit widened to $14.88 billion in Dec’17 from $11.5 billion a year ago. This was on account of higher imports of crude oil and gold. CPI climbed to 17 month high of 5.2 % in Dec’17 and IIP for Nov’17 grew by 8.4%. Higher inflation in Dec’17 was on account of hardening in vegetable prices by 29% and rising cost of housing by 8.25%. WPI decelerated to 3.58% in Dec’17 from 3.93% in Nov’17.
The factors driving US index dollar down were worries from China likely to stop buying US government bonds. Also, that Donald Trump may end NAFTA trade agreement with its counter-parties. Also, with ECB indicating that they would taper down their bond buyback program reduced the demand for US dollar against Euro. Also, US PPI for Dec’17 came in at -0.1 percent against market expectations of 0.2 percent.
USDINR is expected to move sideways in the coming session
* JPYINR trading range for the day is 57.21-58.34.
* JPY gains after Bank of Japan Governor Haruhiko Kuroda offered a positive view on the economy and inflation.
* The BOJ also offered its most optimistic view on regional areas of Japan in nearly a decade in a quarterly report.
* Japan’s Finance Minister Taro Aso: Recent FX market conditions not an important discussion, no comment on foreign-exchange levels
* GBPINR trading range for the day is 87.56-88.67.
* GBP rose as the dollar weakened broadly and on hopes that other EU members would seek a relatively “soft” Brexit.
* GBP remained supported after Netherlands and Spain were open to a deal for Britain to remain as close as possible to the trading bloc crushed short positions.
* The latest positioning data shows long sterling bets have become bigger in recent days, with net sterling long bets rising to their biggest since mid-September 2014.
* EURINR trading range for the day is 77.85-78.79.
* Euro gained on the back of optimism about the euro zone’s economic outlook and expectations for the ECB to wind down its massive monetary stimulus.
* The trade surplus in the 19 countries sharing the euro expanded in November to its highest point in eight months, official estimates showed.
* Market participants, however, said they expect the euro to remain on solid footing in the near term.
* USDINR trading range for the day is 63.45-64.56.
* Rupee slumped after a central bank deputy governor highlighted growing balance sheet risks for state banks due to their high exposure to government securities.
* Deputy governor of the Reserve Bank of India (RBI) said public sector lenders face risks of high interest rate from their large bond holdings.
* India’s December trade deficit widened to its highest in more than three years as higher import bills for gold and crude oil weighed on rising exports.AFTER POST CONTENT
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