Indian Rupee Opened Weaker Amid Pause In Upbeat Risk Sentiment

Indian Rupee Opened Weaker Amid Pause In Upbeat Risk Sentiment

22 Jan 2021 10:04 AM
 

USD/INR

Indian rupee opened weaker at 73.03 compared to 72.99 in the previous session amid a pause in the rally in Asian equities and falling Asian peers. Dollar index was little changed at 90.10. Ten-year US yield was at 1.1058%. Economic data released yesterday revealed that the Initial jobless claims in the US remained elevated near 900,000. Key stats due to be released in the US include private sector PMI figures for January and December existing home sales figures with, January’s prelim services PMI expected to be the key driver. Market participants are focused on the new U.S. administration and the steps it is expected to take to boost the economy. Brent was off 23 cents at $55.86 a barrel while U.S crude inched 26 cents lower to $52.86.

EUR/USD

It’s an eventful day for Euro on the economic calendar. Prelim January private sector PMI figures for France, Germany, and the Eurozone are due out later today, with Germany’s manufacturing and the Eurozone’s PMI expected to be the key drivers. Coronavirus news and vaccine updates will continue to provide direction to the pair. At the time of writing, Euro was up 0.09% to $1.2173.

GBP/USD

It’s a busy day for Pound on the economic calendar. December retail sales and January prelim private sector PMI figures are due out today and are expected to be the key drivers for the pair, with lockdown measures in place. At the time of writing, Pound was down 0.12% to $1.3715.

USD/JPY

It was a busy morning for Yen on the economic calendar. Inflation and private sector PMI figures were in focus. In December, the core consumer prices fell by 1.0% year-on-year. In January, the Manufacturing PMI dropped from 50.0 to 49.7, with the Services PMI falling from 47.7 to 45.7. Going ahead, market participants will keep an eye on US prelim services PMI for further cues. At the time of writing, Yen was up 0.07% to $103.55.

Important data releases today

Time

CCY

Event

Forecast

Previous

12:30

GBP

Retail Sales (MoM) (Dec)

1.2%

-3.8%

14:00

EUR

German Manufacturing PMI (Jan)  

57.5

58.3

15:00

GBP

Composite PMI (Jan) 

50.7

50.4

15:00

GBP

Manufacturing PMI (Jan)  

57.3

57.5

15:00

GBP

Services PMI (Jan) 

49.9

49.4

20:30

USD

Existing Home Sales (Dec)

6.55M

6.69M

21:30

USD

Crude Oil Inventories

-1.167M

-3.247M