Indian Rupee Opens Higher Following Progress Towards Covid-19 Vaccine

Indian Rupee Opens Higher Following Progress Towards Covid-19 Vaccine

10 Nov 2020 10:06 AM
 

USD/INR

Indian rupee opened higher at 74.05 compared to 74.17 in the previous session amid positive risk appetite following advancement towards an effective coronavirus vaccine. The rupee climbed above 74 in the previous session after Joe Biden won the U.S. Presidential elections. However, it was unable to stay at the level amid intervention by the Reserve Bank of India. Dollar index was down 0.1% at 92.64, after climbing 0.5% yesterday. The vaccine news also sent U.S. Treasury yields touching highs in their biggest one-day jump since March. The yield curve hit its steepest level at 0.9750% since March. Ten-year US yield was at 0.92%. Brent crude lowered 1.3% to $41.84 per barrel after it jumped 7.5% at one point yesterday, the biggest single session rise in over five months.

EUR/USD

It’s a relatively busy day ahead on the economic calendar. November’s ZEW Economic Sentiment figures for Germany and the Eurozone are due out. Expect some reaction from EUR to the numbers as the markets get a sense of how the 2nd wave of pandemic is impacting the sentiment. Away from the economic calendar, expect continued support from Biden’s victory. Any updates on COVID-19 and Brexit will also influence. At the time of writing, the EUR was up by 0.18% at $1.1835.

GBP/USD

It’s a busy day ahead on the economic calendar. October claimant count figures and September’s unemployment rate will be the key drivers. Wage growth and employment change figures are also due out but should have less of an impact on the day. During the early session, BRC Retail Sales Monitor figures for October were in focus wherein the retail sales rose by 5.2% in October year-on-year. The British Pound had a slight slump as speculative interest rushed to dollar on positive coronavirus vaccine news, but its slump was limited by encouraging Brexit headlines. UK Finance Minister Rishi Sunak said that significant progress was made in Brexit talks while announcing a plan to provide stability to the financial sector in the post-Brexit era. At the time of writing, the Pound was up by 0.21% at $1.3190. 

USD/JPY

USD/JPY is on a steady decline, extending correction from three-week highs of 105.64. Vaccine progress is boding well for the risk asset alongside the US dollar amid reduced need for additional stimulus globally. The pair surged to the three-week high yesterday, amid a broad risk-on mood, before taking a U-turn from 105.64. At the time of writing, the Japanese Yen was down 0.37% to ¥104.97 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

02:00

GBP

Average Earnings Index +Bonus (Sep)

1.0%

0.0%

02:00

GBP

Claimant Count Change (Oct)

50.0K

28.0K

05:00

EUR

German ZEW Economic Sentiment (Nov)

41.7

56.1

07:00

USD

EIA Short-Term Energy Outlook

-

-

10:00

USD

JOLTs Job Openings (Sep)

6.500M

6.493M