USD/INR – The Indian rupee opened lower against the dollar ahead of crucial trade talks between the U.S. and China. The rupee opened at 69.88 versus the dollar compared with its previous close of 69.71. Asian equities and currencies extended losses on Thursday before the U.S.-China trade talks. Chinese Vice-Premier Liu He will hold negotiations with U.S. officials on Thursday and Friday in Washington after tensions between the two countries ratcheted higher following President Donald Trump remarks that he plans to increase tariffs on Chinese shipments. The U.S. has accused China of backtracking on previous promises and Trump has said that he is considering taxing all imports out of the Asian nation. Trump said on Twitter yesterday that Beijing had informed Washington that the Chinese Vice-Premier is “coming to the U.S. to make a deal.” He added that if a deal did not materialize, he is “very happy with over $100 Billion a year in tariffs filling U.S. coffers.”
EUR/USD – Against the dollar, the euro was a shade higher at $1.1196, having spent the week stuck in a tight $1.1218-$1.1155 range. EUR/USD remains holed up in the 1.1200 region, shrugging off growing risks that might normally put bears in control. The EU Commission's downgraded outlook , heightened U.S.-Sino trade tensions and 10-year German bund yields trading near -0.05 percent are all factors that should have EUR/USD trading near the 2019 low at a minimum. Bears might be treading cautiously as economic green shoots from the euro zone keep popping up, which could keep the ECB from adding stimulus to the economy as many investors have expected. The U.S. interest rate complex could be limiting the downside as well. If bears don't gain control of EUR/USD soon, odds of an upside move will increase.
04 Dec 2020 06:13 PM
Euro has had a superlative run this week. After a few months of sideways trading around 1.1650 – 1.1950, the single European currency has broken the 1.1950 – 1.2000 resistance to sky-rocket to its highest levels since Apr’18
04 Dec 2020 10:49 AM
RBI MPC Highlights: Policy Rates unchanged, Accommodative Stance, Better GDP Expectations
03 Dec 2020 06:57 PM
There has been harsh criticism of US President Trump all over the world for the manner in which he has led US over the last four years
02 Dec 2020 05:44 PM
All the currencies are reaching for greener territories taking cue from the major currency pairs which are at their year’s high. Emerging market currencies have been moving as the vaccine development progresses
01 Dec 2020 07:23 PM
USD/JPY rallied last week on the back of cable that the transition process of President-elect Joe Biden had formally been initiated into the White House. The news enabled market participants to reduce their positions in the safe haven asset.
27 Nov 2020 06:22 PM
The weekly forex reserves data over the last few months strongly indicate that RBI has been forced to buy the massive inflow of dollars to prevent a major rupee appreciation