India Rupee Opened Higher On Firm Risk Appetite; Virus Cases Surge

India Rupee Opened Higher On Firm Risk Appetite; Virus Cases Surge

26 May 2020 10:13 AM
 

USD/INR

India rupee opened higher at 75.68 against its last close of 75.95. The Indian rupee opened higher against the dollar, tracking upbeat Asian shares and U.S. equity futures amid more indications that many economies are reopening. The number of identified cases in India climbed to 144,000, making it the 10th most-affected country in the world. At the beginning of this month, India had identified about 35,000 cases. Dollar index 0.2% down at 99.66. Benchmark Brent crude oil contract 1% higher at $35.86 per barrel, adding to yesterday’s over 1% rise.

EUR/USD

It’s a relatively quiet day ahead on the economic calendar. Germany remains in focus, with May’s GfK Consumer Climate figures due out later this morning. Expect some influence from the numbers, which will give some indication of whether a service sector-driven economic recovery is feasible near-term. Global trade terms remain weak, which will likely shift focus to service sector activity near-term. Consumer confidence and consumption will be pivotal in any economic recovery. At the time of writing, the EUR was up by 0.11% to $1.0910.

GBP/USD

It’s another quiet day ahead on the economic calendar. Following Monday’s holiday, expect Brexit and COVID-19 news updates to be the key drivers on the day. Will there be a surprise decision to agree to a Transition period extension? The current economic environment would support such a move. It would be hard to imagine voters complaining when considering the impact of the COVID-19 pandemic on the UK economy. At the time of writing, the Pound was up by 0.14% to $1.2208, with risk sentiment providing support.

USD/JPY

USD/JPY consolidates early gains below 108.00 following BOJ's Kuroda dovish comments. The US stock futures rise and could be weighing on the US dollar, capping the further upside in the spot. The offered tone around the Japanese Yen strengthened, pushing the already bid USD/JPY higher from 107.87 from 107.75 after Bank of Japan's (BOJ) Kuroda warned about downside risks to Japan's economy. At the time of writing, the Japanese Yen was down by 0.14% to ¥107.86 against the U.S Dollar

Important data releases today

Time

CCY

Event

Forecast

Previous

19:30

USD

CB Consumer Confidence (May)

88.0

86.9

19:30

USD

New Home Sales (Apr)

490K

627K