India Rupee Opened Higher On Phased Lifting Of Lockdown, Yuan Rebound

India Rupee Opened Higher On Phased Lifting Of Lockdown, Yuan Rebound

01 Jun 2020 10:15 AM
 

USD/INR

India rupee opened higher at 75.3450. against its last close of 75.6150. The Indian rupee traded higher against the dollar after the government allowed lifting lockdown restrictions in a phased manner while maintaining curbs in areas worst affected by the coronavirus. The phased unwinding of the lockdown was decided despite India reporting an increase in the number of daily cases. The total number of coronavirus cases is now approaching 190,000, making the country the seventh most-affected in the world. Over the last six days, India has been adding 7,000 new cases daily. Dollar index down 0.3% at 98.03. Benchmark Brent crude oil contract 0.5% lower at $37.64 per barrel.

EUR/USD

It’s a busy day ahead on the economic calendar. Key stats include May’s Manufacturing PMI numbers for Italy and Spain. Finalized PMIs are also due out for France, Germany, and Spain. The markets will be looking for better a rise in Italy’s PMI and for Germany and the Eurozone PMIs to avoid a downward revision. We expect that the focus will be in the details, with hiring and new orders key areas to consider. Away from the economic calendar, risk appetite supported the EUR in the early part of the day. At the time of writing, the EUR was up by 0.33% to $1.1138.

GBP/USD

It’s a relatively quiet day ahead on the economic calendar. May’s finalized Manufacturing PMI is due out later today. Barring a material deviation from prelim, however, we would expect the Pound to brush aside the numbers. Updates on Brexit and COVID-19 will likely be the key drivers on the day. At the time of writing, the Pound was up by 0.47% to $1.2401, the upside coming off the back of Dollar weakness.

USD/JPY

Capital spending rose by 4.3% in the 1st quarter, year-on-year, reversing a 3.5% fall in the 4th quarter. The Japanese Yen moved from ¥107.667 to ¥107.720 upon release of the figures. USD/JPY continues to range around 107.70. The spot is divided between broad-based US dollar weakness and the risk-on rally in the Asian equities. At the time of writing, the Japanese Yen was up by 0.13% to ¥107.69 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

13:25

EUR

German Manufacturing PMI (May)

36.8

34.5

14:00

GBP

Manufacturing PMI (May)

40.7

40.6

19:30

USD

ISM Manufacturing PMI (May)

43.0

41.5