USD/INR – The Indian rupee opened flat against the dollar after the biggest decline in Brent crude in two weeks overshadowed a surge in dollar index on upbeat U.S. economic data. The rupee opened at 69.71 per dollar in early trades compared with its previous close of 68.71. Most Asian currencies slipped Wednesday after the dollar index climbed 0.5% following buoyant U.S. economic data. Retail sales in June grew 0.4% month-on-month, significantly better than the 0.1% increase expected. Control retail sales too trumped estimates, growing 0.7%, more than double of what was expected. There was more good news for the U.S. economy. Manufacturing output growth in June was twice the pace of forecasts on a month-on-month basis.
EUR/USD – The euro was steady at $1.1212 after losing more than 0.4% the previous day. The losses came after a survey by the ZEW institute showed that the mood among German investors deteriorated more sharply than expected in July amid an unresolved trade dispute between China and the United States as well as political tensions with Iran. Yesterday's contrasting data prints from Germany and the U.S. would have one believe EUR/USD should be tumbling toward new lows. However, investors seem reluctant to push aggressively. Germany's July ZEW showed continued and sharp deterioration for economic sentiment and current conditions. Meanwhile, U.S. June retail sales suggest the U.S. economy remains robust and consumers feel confident. The contrasting data, and wider German-U.S. yield spreads, did send EUR/USD lower, but not drastically.
GBP/USD – The pound retreated to a 27-month low of $1.2396 overnight as Boris Johnson and Jeremy Hunt, the two candidates to be Britain's next prime minister, vied to outgun each other on taking a harder Brexit stance. Their positions appear to be leading markets to price a sharply higher risk of Britain leaving the European Union on October 31 without any transition trading agreements in place. That would potentially force the Bank of England to cut interest rates to stave off an economic catastrophe. The pound suffered its biggest one-day fall yesterday since March after Boris Johnson and his rival to be Conservative Party leader, Jeremy Hunt, said late on Monday they would not accept the so-called Northern Irish backstop element of Theresa May's Brexit deal. Sterling last traded little changed at $1.2411.
USD/JPY – The dollar was almost flat at 108.17 yen after advancing 0.3% against the yen overnight on the strong U.S. retail sales data. USD/JPY is getting a boost following very solid U.S. June retail sales data. Indeed, that data should lift Q2 GDP growth enough to make the Fed's easing guidance even more heavily dependent on bad news abroad being an eventual threat to the U.S. economy. The Fed's semi-official status as the world's central bank, and the lingering threat to global trade and growth from protectionism, give the Fed some latitude to do an insurance rate cut on July 31. However, a panic-like 50bp cut, that's still priced as a 22% probability, is limiting the rebound in U.S. yields and USD/JPY following the strong sales report.
Currency Range for today
Important data releases today
|2:00 PM||GBP||CPI (YoY) (Jun)||2.0%||2.0%|
|2:30 PM||EUR||CPI (YoY) (Jun)||1.2%||1.2%|
|6:00 PM||USD||Building Permits (Jun)||1.300M||1.299M|
|8:00 PM||USD||Crude Oil Inventories||-2.694M||-9.499M|
16 Aug 2019 05:34 PM
The Indian rupee fell for a sixth week against the dollar, its biggest losing streak since May last year, as trade tensions and global growth
16 Aug 2019 09:14 AM
USD/INR – The Indian rupee opened lower against the dollar as growth worries prompted by an inversion of the U.S. yield curve hurt demand for emerging market assets. The rupee, resuming trade after yesterday’s holiday, opened at 71.36 compared to its
14 Aug 2019 05:41 PM
The Indian rupee rose for the first time in three sessions against the dollar, as investors’ appetite for risk assets improved after U.S.
14 Aug 2019 09:16 AM
USD/INR – The Indian rupee opened higher against the dollar after President Donald Trump deferred the implementation of tariffs on some Chinese products, prompting a broad rally in Asian currencies and equities. The rupee opened at 71.00 compared to
13 Aug 2019 05:38 PM
The Indian rupee fell for a second day to close at a six-month low against the dollar, tracking a slump in shares amid trade concerns and political uncertainty in some regions
13 Aug 2019 01:56 PM
The Indian rupee fell further against the dollar in afternoon trade on demand for the greenback from foreign banks and on global risk-off sentiment amid worries over Sino-U.S. trade talks and political unrest in some regions.