Yesterday rupee depreciated by 0.49 as dollar index weakened by 0.02 percent during the day. In the latest UN report they said that Indian economy is likely to grow at 7.2% in 2018. The Government of India will issue CPI and IIP numbers today. According to market estimates CPI likely to come in at 4.2% in Mar’18 and IIP at 7% for Feb’18.
Geo political tensions rises as Donald Trump tweets that Russia should get ready for missiles to be fired at ally Syria. However, tensions of trade war were mildly eased by Donald Trump’s tweet in which he mentioned that a great future lies ahead for both the countries. Responding to this Xi Jinping China’s president also promised to cut import tariffs. CPI came in at -0.1% against market expectations of 0% for Mar’18. In the latest FOMC minutes all policy makers expect that inflation would rise in the coming months.
EURUSD appreciated by 0.09 percent while EURINR depreciated by 0.67 percent during the same time frame.
ECB Council member Nowotny mentioned that the bond buyback program will wound down by the down of this year. Services PMI from Euro zone came in line with market expectations at 54.9 for Mar’18. This marked the smallest surplus since Jan’17. French industrial production came in at 1.2% for Mar’18 against market expectations of 1.5%. Italian retail sales data came in at 0.4% for Mar’18 against market expectations of 0.3%.
GBP appreciated against the US dollar by 0.03 percent while GBPINR depreciated by 0.51 percent in the same time frame.
BOE member McCafferty’s hawkish comments on future interest rate policy helped the pushed the chances of increase in interest rates for the May meeting. Also, the Halifax HPI came in at 1.5% for Mar’18 against market expectations of 0.1%. Manufacturing production data from UK came in at -0.2% for Mar’18 against market expectations of 0.2%.
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