Yesterday rupee appreciated by 0.2 percent despite dollar index strengthening by 0.16 percent. Government plans to borrow additional Rs 50,000 crore during the current fiscal year. 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%. WPI decelerated to 3.58% in Dec’17 from 3.93% in Nov’17.
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. However, industrial production data from US came in at 0.9 percent against market expectations of 0.4 percent in Dec’17. Also, according to Federal Reserve Beige book data 12 districts reported their growth numbers out of which 11 districts reported modest gains.
USDINR is expected to move sideways in the coming session
EURUSD depreciated by 0.61 percent while EURINR depreciated by 0.04 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. However, Euro gaining momentum over these comments finally started to settle down in the last couple of trade sessions. 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 Euro area came in line with market estimates of 1.4 percent for Dec’17.
EURINR is expected to move sideways in the coming session
GBP appreciated against the US dollar by 0.25 percent during the day. Also, GBPINR depreciated by 0.04 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
* USDINR trading range for the day is 63.62-64.44.
* Rupee gained on selling by foreign, private banks after comments from the Department of Economic affairs secretary to reduce additional market borrowing.
* India has cut its additional market borrowing requirement by more than half for the fiscal year ending in March to 200 billion rupees ($3.13 billion).
* India’s industrial production in November grew at a pace that nearly double than the rate economists had expected, thanks to robust expansion in manufacturing.
* EURINR trading range for the day is 77.61-79.32.
* Euro traded in range after shaking off a setback to Chancellor Angela Merkel’s chances of forging a “grand coalition” in Germany.
* The central bank was unlikely to alter its policy message at next week’s meeting, as inflation remains well below the 2% target.
* Italy’s trade surplus decreased in November, figures from the statistical office Istat showed.
* GBPINR trading range for the day is 87.79-88.75.
* GBP traded in range despite data showing annual inflation rose slower than estimated in December.
* UK inflation slowed for the first time in six months in December, on air fares and recreational goods costs, official data showed.
* Risk specialists in British businesses are more worried about Brexit and other regulatory change than they were a year ago.
* JPYINR trading range for the day is 57.52-58.16.
* JPY dropped on profit booking and on speculation that the BOJ could eventually begin looking for a way out of its super accommodative policy.
* Japan’s central bank is set to maintain upbeat price forecasts next week and paint a slightly better picture of the economy than it did three months ago.
* The value of core machine orders in Japan surged a seasonally adjusted 5.7 percent on month in November, the Cabinet Office said – coming in at 899.2 billion yen.AFTER POST CONTENT
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