India Rupee Opened Higher Tracking Upbeat Shares, Peers

India Rupee Opened Higher Tracking Upbeat Shares, Peers

06 Jul 2020 10:10 AM
 

USD/INR

India rupee opened higher at 74.52. against its last close of 74.63. The Indian rupee strengthened further against the dollar amid firm risk appetite despite worries over the worsening coronavirus outbreak in the U.S. The rise in daily infections has prompted parts of the U.S. to put a pause on reopening plans and reimpose restrictions, fueling worries that the recent positive data surprises may not sustain. Last week, U.S. job additions and manufacturing activity were both ahead of forecasts. Dollar index down 0.2% at 97.03. Benchmark Brent crude oil contract 0.4% higher at $42.96 per barrel.

EUR/USD

It’s a relatively busy day ahead on the economic calendar. From Germany, May’s factory orders are due out, with May retail sales and June’s Construction PMI due from Germany. While we would expect Germany’s factory orders to provide direction, risk sentiment will likely be the key driver. Concerns over the spike in new COVID-19 cases in the U.S could weigh on risk sentiment later in the day. Much will depend on the news wires. At the time of writing, the EUR was up by 0.20% to $1.1270.

GBP/USD

It’s a quiet day ahead on the economic calendar. June’s Construction PMI is due out later this morning. Any influence on the Pound will likely be short-lived, however, with the Pound likely to be in the hands of Brexit. Updates from the weekend suggested that the chances of a no-deal departure from the EU had risen sharply. Risk sentiment will also influence. The risk-on sentiment limited the downside for the Pound early on. At the time of writing, the Pound was down by 0.01% to $1.2482.

USD/JPY

Bank of Japan (BOJ), on Monday, increased purchases of Japanese government bonds (JGBs) maturing in 5-10 years to 420 billion yen from the previous purchases worth 400 billion yen. The BOJ has been running a yield curve control since 2016. Under the program, the central bank adjusts purchases of bonds as and when needed to keep the 10-year yield around 0%. USD/JPY is currently trading near 107.65, representing a 0.17% gain on the day. The yen is being offered against most majors as stocks are flashing green despite the lingering coronavirus concerns.

Important data releases today

Time

CCY

Event

Forecast

Previous

14:00

GBP

Construction PMI (Jun)

47.0

28.9

19:30

USD

ISM Non-Manufacturing PMI (Jun)

50.0

45.4