India Rupee Opened Flat; Yuan At 8-Month Low on US-China Tensions

India Rupee Opened Flat; Yuan At 8-Month Low on US-China Tensions

27 May 2020 10:14 AM
 

USD/INR

India rupee opened flat at 75.67. against its last close of 75.66. The Indian rupee traded flat against the dollar amid the Chinese yuan’s weakness on increasing U.S.-China tensions over Hong Kong. the dollar index yesterday tumbled 1% to below 99, the lowest in three weeks. The decline came amid the S&P 500 Index climbing to its highest in almost three months on bets of an economic rebound. The U.S. gauge is now up more than 36% from the lows reached in late-March. In that period, the dollar index has fallen from near 103 to 99. Benchmark Brent crude oil contract 1% lower at $35.82 per barrel, after climbing 1.8% yesterday.

EUR/USD

It’s a relatively quiet day ahead on the economic calendar. While there are no material stats due out of the Eurozone, the ECB and the EU Commission are in focus today. In the early part of the European session, ECB President Lagarde is scheduled to speak. Expect any chatter on monetary policy or the economic outlook to influence. Lagarde’s speech precedes the release of the ECB’s Financial Stability Review. We will expect the review to be a key area of focus for the markets today. With the ECB in focus early in the day, Brussels will also be in the spotlight. The European Commission is due to announce the COVID-19 Recovery Fund and EU Budget. At the time of writing, the EUR was down by 0.10% to $1.0971.

GBP/USD

It’s another quiet day ahead on the economic calendar. There are no material stats due out to provide the Pound with direction. A lack of chatter on Brexit and the risk-on sentiment has provided the Pound with further support this week. Expect any updates on Brexit and COVID-19 to test this support, however. At the time of writing, the Pound was down by 0.06% to $1.2327.

USD/JPY

USD/JPY prints 0.07% losses on a day, currently around 107.47, while stretching the previous day’s weakness forward during the initial Tokyo open on Wednesday. That said, the pair took a U-turn from a five-day top of 107.92 to close near 107.55 on Tuesday. In addition to US President Donald Trump’s signals that sanction on China coming by the end of the week, US Senator Marco Rubio tweet suggested further hardships for the Asian major if it moves ahead with Hong Kong Security Bill.

Important data releases today

Time

CCY

Event

Forecast

Previous

13:00

EUR

ECB President Lagarde Speaks