Indian Rupee Opened Weaker Ahead Of US Inflation Data

Indian Rupee Opened Weaker Ahead Of US Inflation Data

12 May 2021 10:12 AM
 

USD/INR

Indian rupee opened weaker at 73.50 compared to 73.34 in the previous session amid a stronger Dollar and weak Asian equities ahead of US Inflation data. Dollar index was up 0.2% at 90.28. Ten-year US yield was at 1.6288%. US Consumer inflation rate is expected to increase by 3.6% in April and the core inflation rate may touch 2.3%. A stronger reading may lead to a selloff in risk assets like equities and emerging market currencies and Treasuries. A higher inflation may also mean that the Fed may be forced to increase the interest rates earlier than expected. Geopolitical uncertainty over Israel and Palestine is expected to weigh on the risk sentiment. India April consumer price inflation data and March Industrial output data will be released later today. Although, the key driver for the day will be April inflation figures due out of the US later today. Brent crude was 0.1% higher at $68.66 per barrel.

EUR/USD

It’s a relatively busy day for Euro on the economic calendar. Industrial production figures for the Eurozone and finalized member state inflation figures for April are due out with industrial production numbers for the Eurozone expected to influence the most. At the time of writing, Euro was down 0.25% to $1.2116.

GBP/USD

It’s an eventful day for Pound on the economic calendar. Q1 GDP numbers, industrial and manufacturing production figures and trade data for March are due out. With GDP, manufacturing production, and trade data expected to have the greatest influence. BoE Governor Bailey is also scheduled to speak later today and will be eyed for his views on today’s stats. At the time of writing, Pound was down 0.21% to $1.4111.

USD/JPY

It is a busy day for Yen on the economic calendar. Japanese Leading Economic Coincident Index PREL for March is due out later today however, the key driver will be the US CPI data. Coronavirus updates from Japan will continue to influence. At the time of writing, Yen was up 0.26% to $108.86.                                                                                                                                             

Important data releases today

Time

CCY

Event

Forecast

Previous

11:30

GBP

GDP (YoY) (Q1)  

-6.1%

-7.3%

11:30

GBP

GDP (MoM)

-

0.4%

11:30

GBP

GDP (QoQ) (Q1) 

-1.6%

1.3%

11:30

GBP

Manufacturing Production (MoM) (Mar)

1.0%

1.3%

11:30

GBP

Monthly GDP 3M/3M Change

-

-1.6%

14:30

GBP

BoE Gov Bailey Speaks 

-

-

17:30

INR

CPI (YoY) (Apr)

4.20%

5.52%

17:30

INR

Industrial Production (YoY) (Mar)

17.6%

-3.6%

17:30

INR

Manufacturing Output (MoM) (Mar)

-

-3.7%

18:00

USD

Core CPI (MoM) (Apr)

0.3%

0.3%

20:00

USD

Crude Oil Inventories

-2.817M

-7.990M