Indian Rupee Opened Stronger Following Biden's Win

Indian Rupee Opened Stronger Following Biden's Win

09 Nov 2020 10:06 AM
 

USD/INR

The Indian rupee opened stronger at 73.96 against the dollar tracking a broad strength in regional currencies on declaration of Democrat Joe Biden as the next U.S. President compared to the last close of 74.20. Reserve Bank of India has extended trading hours for currency and bond markets from 10:00 a.m. to 3:30 p.m. local time, starting today, compared to the current schedule of 10:00 a.m. to 2:00 p.m. (IST). The U.S. dollar was at 92.18 and hovering near its lowest level in 10 weeks, other currencies were up at least 0.2% each. Biden victory over Donald Trump by passing the threshold of 270 Electoral College votes on Saturday led to upbeat risk sentiment in the region.

EUR/USD

On the economic calendar front, it is a relatively quiet week ahead, with focus on Germany’s trade data for September. Eurozone falls to a second wave of the coronavirus, however, the stats are not likely to have a significant impact. October and November data will be in spotlight as the market will be looking at that to ascertain the damage to the 4th quarter. Away from the economic data, any further updates on COVID-19 is expected to remain a factor. U.S Politics and Brexit will also influence. Biden’s victory is considered to have a positive impact on Euro. On the monetary policy front, ECB President Lagarde could move the market and soften the EUR. The ECB President had earlier talked of further easing in December. Any hints on the same should pin back the EUR.

GBP/USD

While there are no material economic data releases to move the market today, BoE Governor Bailey is scheduled to deliver a speech later this morning. Following last week’s policy decision, there maybe a few surprises. Away from the economic calendar, updates on COVID-19 figures and Brexit will remain key drivers. For a Brexit deal this week, it’s last chance saloon. Talks from the weekend suggest that a deal is at hand. Some compromise from the UK may be likely in a bid to seal a trade agreement with the U.S in return with Biden looking to take the Presidency.

USD/JPY

USD/JPY is currently trading at 103.38, pressured in the open as US equities lead the way. The pair has slipped over 2% during the US elections as, either way, the yen was favored whether it be a Blue wave or just a Blue ripple. U.S. dollar is expected to drag on either a blue wave or a Biden White House controlling both Senate and the House. In such a scenario, Yen would win over the greenback as the preferred safe haven for investors.

Important data releases today                                                                                                                              

Time

CCY

Event

Forecast

Previous

14:55

EUR

ECB President Lagarde Speaks

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16:05

GBP

BOE Gov Bailey Speaks

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