# USDINR trading range for the day is 64.12-64.71.
# Rupee traded with a little changed as foreign institutional inflows into local stocks likely offset strength in the dollar and demand from oil importers.
# RBI kept its main repo rate on hold for a third consecutive policy meeting and retained its “neutral” bias.
# Activity in India’s services sector grew at the fastest pace in three months in January, underpinned by a recovery in new orders.
Yesterday rupee depreciated by 0.03 percent despite dollar index weakening by 0.03 percent. In the meeting the decision came in line with market expectations but the degree of hawkishness in the policy provided a breather to the market. Inflation touched a 17 month high in Dec’17 at 5.21. Inflation is likely to taper off in the second half of FY19 and provide a stable working environment according to MPC. Hence RBI decided to keep interest rates unchanged at 6%. Also, Indian equity market remained positive during the day with a surge of around 0.96 percent in Nifty Index.
Unemployment claims for Jan’18 came in at 221,000 as compared to market expectations of 232,000. Also, final services come in line with market expectations at 53.3 in Jan’18. Non-farm payroll came in at 200,000 against market expectations of 180,000 for Jan’18. US trade deficit widens to $53.1 billion in Dec’17.
USDINR is expected to move sideways in the coming session
# EURINR trading range for the day is 78.52-79.53.
# Euro slipped on disappointment over reports that the leader of Germany’s SPD Martin Schulz, would not be taking over as finance minister for Europe’s biggest economy.
# Euro zone economic growth is likely to slow slightly this year and next from its fastest expansion in a decade last year, the European Commission forecast.
# The European Union’s statistics office Eurostat estimated last month that euro zone growth was 2.5 percent in 2017.
EURUSD depreciated by 0.14 percent while EURINR depreciated by 0.32 percent during the same time frame.
Euro remained weak as Mario Draghi called for monitoring of the currency volatility. He also mentioned that inflation had remained subdued but economic growth has been on track. Also, German industrial production comes in line with market estimates at -0.6% for Jan’18. Euro services PMI comes in at 58 for Jan’18 against market expectations of 57.6. German factory orders rebounds to 3.8% in Jan’18 as compared to market expectation of 0.6%. Also, German parties go ahead with grand coalition.
EURINR is expected to move sideways in the coming session
# GBPINR trading range for the day is 89.05-89.92.
# GBP traded in range as UK GDP growth slows in 2018, a view that is broadly echoed in the latest BOE projections.
# UK house price balance remained stable in January and buyer enquiries continued to fall, data from the Royal Institution of Chartered Surveyors showed.
# Permanent job placements in the U.K grew at the fastest pace in six months in January
# JPYINR trading range for the day is 58.21-59.58.
# JPY remained under pressure as the dollar was off recent lows, benefiting from the euro’s weakness and higher U.S. yields
# BoJ’s Suzuki: Policy adjustment possible for better sustainability, cut in bond operations has no policy implication
# BoJ’s Suzuki: ETF purchases are a needed policy, ETF purchases shouldn’t continue foreverAFTER POST CONTENT
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