India Rupee Opened Little Changed  After Offshore Yuan Rises Above 7 To Dollar

India Rupee Opened Little Changed After Offshore Yuan Rises Above 7 To Dollar

07 Jul 2020 10:09 AM
 

USD/INR

India rupee opened little changed at 74.7 against its last close of 74.67. The Indian rupee opened little changed against the U.S. currency, tracking a Chinese yuan-led decline on the dollar. The rupee and other regional currencies will further be helped by the dollar’s decline against its major peers. The dollar index dropped 0.5% yesterday to a two-week low, weighed by Nasdaq Composite climbing to record highs and the S&P 500 Index adding 1.5%. Upbeat U.S. services sector data, which followed last week’s better-than-expected U.S. manufacturing and jobs data, boosted Wall Street. Benchmark Brent crude oil contract 0.4% lower at $42.90 per barrel.

EUR/USD

It’s a relatively quiet day ahead on the economic calendar. Key stats include German industrial production figures for May. Following June’s PMI numbers, there will need to be a pickup in production to support the survey-based data. Away from the economic calendar, however, expect market risk sentiment to remain the key driver. While news from China was positive on Monday, geopolitics and COVID-19 remain key risks to the current sentiment. At the time of writing, the EUR was up by 0.10% to $1.1320.

GBP/USD

It’s a quiet day ahead on the economic calendar. Housing sector figures for June and 1st quarter labor productivity numbers are due out. Following news at the start of the week of plans to raise the threshold for stamp duty, June house price figures should have a muted impact. We can also expect 1st quarter labor productivity numbers to also be brushed aside by the Pound. Expect market risk sentiment, COVID-19, and Brexit chatter to remain key drivers. At the time of writing, the Pound was up by 0.10% to $1.2505.

USD/JPY

Bank Household spending fell by 0.1% in May, month-on-month, partially reversing a 6.2% decline from April Year-on-year, household spending was down by 16.2%, following an 11.1% slide in April. According to the Statistic Bureau, spending on clothing & footwear (-37.4%), culture & recreation (-37.2%), education (-29.2%), and housing (-24.2%) weighed heavily. There were also sizeable declines in spending on fuel, light, & water charges (-8.0%), medical care (-6.5%), and food (-3.4%). The Japanese Yen moved from ¥107.357 to ¥107.356 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥107.31 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

19:30

USD

JOLTs Job Openings (May)

4.850M

5.046M