India Rupee Opened Higher; Trump Comments On China, Lockdown Updates Awaited

India Rupee Opened Higher; Trump Comments On China, Lockdown Updates Awaited

29 May 2020 10:08 AM
 

USD/INR

India rupee opened higher at 75.71. against its last close of 75.75. The Indian rupee opened higher against the dollar tracking rangebound Asian peers ahead of U.S. President Donald Trump’s press conference on China, likely over Hong Kong’s new security law. the dollar index dropped to two-month lows yesterday. Data released yesterday showed that 2.1 million American filed for unemployment benefits last week, in line with expectations. Benchmark Brent crude oil contract 0.5% lower at $35.11 per barrel after climbing 1.6% yesterday.

EUR/USD

It’s a busy day ahead on the economic calendar. Key stats include French and German retail sales figures for April and the Eurozone prelim inflation numbers for May. Prelim inflation figures for France and Italy and 2nd estimate GDP numbers for France are also due out. We will expect the numbers to have a muted impact on the EUR, however. The EU’s recovery plan and the continued easing of lockdown measures remain positives. From the early part of the day, it was risk aversion that pinned back the EUR as the markets await Trump’s news conference later today. At the time of writing, the EUR was up by 0.07% to $1.1085.

GBP/USD

It’s yet another quiet day ahead on the economic calendar. There are no material stats due out to provide the Pound with direction. Through the day, expect market risk sentiment and any Brexit chatter to be key drivers. At the time of writing, the Pound was up by 0.01% to $1.2322.

USD/JPY

Inflation was in focus in the early part of the day, along with industrial production and retail sales figures. In May, the Ku-area of Tokyo saw inflationary pressures return, with core consumer prices rising by 0.20% In April, consumer prices had fallen by 0.10%, year-on-year. According to the Ministry of Internal Affairs and Communication. Rising prices for clothes & footwear (+1.7%), furniture & household utensils (+1.7%), and culture & recreation (+1.2%) supported the rise. There were also increases in prices for medical care (+0.8%) and housing (+0.7%). Prices for Education (-8.9%) and fuel, light, & water charges (-1.9%) pinned back inflationary pressures, however. The Japanese Yen moved from ¥107.701 to ¥107.608 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.22% to ¥107.41 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

14:30

EUR

CPI (YoY) (May)

0.1%

0.3%

20:30

USD

Fed Chair Powell Speaks