Rupee Opened Higher As China Data Ease Risk Aversion

Rupee Opened Higher As China Data Ease Risk Aversion

31 Mar 2020 09:12 AM
 

USD/INR

India rupee opened higher at 75.52 against its last close of 75.65. The Indian rupee is opened higher against the dollar as investors’ risk aversion eased after better-than-expected China manufacturing data. Foreign investors sold net $227 million worth of Indian bonds on Mar. 30. Month-to-date these investors are sellers of net $7.50 billion of Indian debt. Ten-year US yield at 0.70%. Yesterday intraday, the yield  fell to a three-week low of 0.60%. Benchmark Brent crude oil contract 2% higher at $23.20 per barrel, poised to end a three-day losing run. 

EUR/USD

It’s a busy day ahead on the economic calendar. Key stats March unemployment numbers out of Germany and the Eurozone’s prelim March inflation figures. French consumer spending figures for February, 4th quarter GDP numbers out of Spain and prelim March inflation figures out of Italy should have a muted impact on the day. Expect German unemployment figures to have the greatest influence on the day, with the markets prepped for softer inflationary pressures. When considering Germany’s unemployment numbers, the markets will also need to assume that worse is yet to come. Outside of the stats, the latest updates on the coronavirus numbers will also provide direction. A smaller increase in the number of new cases would provide support to the EUR. At the time of writing, the EUR was down by 0.32% at $1.1013.

GBP/USD

It’s a relatively busy day ahead on the economic calendar. Finalized 4th quarter GDP and business investment numbers will likely have a muted impact on the Pound, however. The BoE and the government have already made their moves and the markets should now be looking forward and not back to the 4th quarter. Outside of the numbers, the number of new cases in the UK would need to be on the lower side, however, for the Pound to find support. Updates from Brexit talks will also be in focus on the day. A failure to find common ground will raise the Brexit stress levels. At the time of writing, the Pound was down by 0.71% to $1.2326.

USD/JPY

Industrial production and retail sales figures for February were in focus early in the day. According to the Ministry of Economy, Trade, and Industry, retail sales jumped by 1.7% in February, year-on-year, reversing a 0.4% fall in January. Economists had forecast a 1.2% decline. Industrial production increased by 0.40% in February, according to prelim figures, following a 1.0% rise in January. Economists had forecast a 0.1% rise. The Japanese Yen moved from ¥108.104 to ¥108.066 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.71% to ¥108.53 against the U.S Dollar. 

Important data releases today

Time

CCY

Event

Forecast

Previous

11:30

GBP

GDP (YoY) (Q4)

1.1%

1.1%

11:30

GBP

GDP (QoQ) (Q4)

0.0%

0.4%

13:25

EUR

German Unemployment Change (Mar)

29K

-10K

14:30

EUR

CPI (YoY) (Mar) 

0.8%

1.2%

19:30

USD

CB Consumer Confidence (Mar)

110

130.7