Indian Rupee Opened Lower; Shares Fall On Doubts Over Economic Rebound

Indian Rupee Opened Lower; Shares Fall On Doubts Over Economic Rebound

14 Jul 2020 10:11 AM
 

Market Analysis

USD/INR

India rupee opened lower at 75.345 against its last close of 75.19.The Indian rupee traded lower against the dollar, tracking losses in regional equities as fresh containment steps to control the coronavirus outbreak fueled worries over economic recovery. Equity gauges of Hong Kong, Japan, were down 1.7% and 1%, respectively, and the SGX Nifty indicated a lower opening for Indian equities. California, the most populous U.S. state, halted reopening plans, closed indoor operations of restaurants, wineries, movie theatres, and museums. All bars were ordered to cease operations. Hong Kong, which in recent days has witnessed an increase in the number of cases, required gyms and bars to close for a week and put limits on public gatherings. 

EUR/USD

It’s a relatively busy day ahead on the economic calendar. Key stats include industrial production figures for the Eurozone and the ZEW economic sentiment numbers for Germany and the Eurozone. We would expect the ZEW economic sentiment figures to have a greater influence today. Following impressive industrial production figures out of France and Italy, the markets are expecting a solid set of numbers for May. Outside of the numbers, sentiment towards talks on the EU Recovery Fund, COVID10, and Brexit will remain key drivers. At the time of writing, the EUR was down by 0.04% to $1.1340.

GBP/USD

It’s a busy day ahead on the economic calendar. Key stats include May manufacturing and industrial production, trade data, and rolling 3-monthly GDP numbers. Manufacturing production and GDP figures are expected to have the greatest impact on the Pound. Away from the economic calendar, Brexit chatter will remain in focus on the day. At the time of writing, the Pound was down by 0.06% to $1.2548.

USD/JPY

The Bank of Japan is widely expected to leave its policy settings unchanged at the end of a two-day meeting on Wednesday, while signaling a readiness to ease more if needed. The net effect on Japan's asset markets and the yen should be neutral. The policy announcement and Governor Kuroda's press conference will likely include no change in the central bank's targeted interest rates and quantitative easing will continue to be tweaked in line with the BOJ's yield curve control policy. As of this writing, the currency pair is trading at 107.18, down from its Asian session highs at 107.35 and from where it opened at 107.22.

 Important data releases today

Time

CCY

Event

Forecast

Previous

11:30

GBP

Claimant Count Change

400.0K

528.9K

11:30

GBP

GDP (MoM)

 

-20.4%

11:30

GBP

Manufacturing Production (MoM) (May)

8.0%

-24.3%

11:30

GBP

Monthly GDP 3M/3M Change

 

-10.4%

12:00

INR

WPI Food (YoY) (Jun)

 

1.13%

12:00

INR

WPI Inflation (YoY)(Jun)

-2.4%

-3.21%

12:00

INR

WPI Manufacturing Inflation (YoY) (Jun)

 

-0.42%

14:00

EUR

German ZEW Economics Sentiment (Jul)

 

63.4

18:00

USD

Core CPI (MoM) (Jun)

0.1%

-0.1%