India Rupee Opened Lower; US-China Friction, Shares In Focus

India Rupee Opened Lower; US-China Friction, Shares In Focus

28 May 2020 10:11 AM
 

USD/INR

India rupee opened weaker at 75.90. against its last close of 75.7150. The Indian rupee opened lower against the dollar amid mixed regional cues after the U.S. said Hong Kong lost its autonomy from China, further straining the Sino-U.S. relationship. While the friction between the U.S. and China weighed on the yuan alongside other Asian currencies, it did not have an impact on risk appetite. Asian equities were trading higher after the S&P 500 Index climbed 1.5% yesterday to its highest in almost three months. Dollar index down 0.2% at 98.82. Benchmark Brent crude oil contract 1.3% lower at $34.30 per barrel, adding to yesterday’s 4% fall.

EUR/USD

It’s another relatively quiet day ahead on the economic calendar. Key stats include prelim May inflation figures from Germany and Spain. Business and Consumer confidence figures out of Italy and the Eurozone should have a muted impact, following the EU’s COVID-19 recovery plan announced on Wednesday.  EU’s recovery plan and the continued easing of lockdown measures to provide support. The markets will need to track any chatter from Beijing and Washington, however. Any rise in tensions and action from either side will test risk appetite on the day. At the time of writing, the EUR was up by 0.11% to $1.1018.

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. On Wednesday, we saw the Pound take a hit in response to the threat of the BoE cutting interest rates into negative territory. BoE Chief Economist Haldane had attempted to pour cold water on such a prospect but to no avail. 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 0.05% to $1.2267.

USD/JPY

USD/JPY holds onto recovery gains from 107.65, prints two-day winning streak. The yen is losing ground on the back of the risk-on action in the Asian equities and S&P 500 futures, as investors cheer global stimulus measures. Focus on US data. Tensions between the US and China spurred demand for safe-haven assets, with government bond yields easing as the US government announced it’s studying sanctions on China after the country-imposed security laws on Hong Kong.  Japan’s macroeconomic calendar had nothing to offer on Wednesday and would remain the same this Thursday. At the time of writing, the Japanese Yen was down by 0.13% to ¥107.86 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

18:00

USD

Initial Jobless Claims

2,100K

2,438K

18:00

USD

Core Durable Goods Orders (MoM) (Apr)

-14.0%

-0.2%

18:00

USD

GDP (QoQ) (Q1)

-4.8%

-4.8%

19:30

USD

Pending Home Sales (MoM) (Apr)

-15.0%

-20.8%

20:30

USD

Crude Oil Inventories

-1.944M

-4.983M