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.
11 Jul 2020 12:02 PM
The yellow metal has had a fabulous run for the last 2 years – further accentuated by a bout of global risk aversion caused due to the widespread pandemic.
07 Jul 2020 07:14 PM
As the Earth battles against the virus, hopes fade on the development of its vaccine in the near future, causing more worry around the globe.
06 Jul 2020 04:59 PM
The movement in rupee last few weeks has left traders confounded. When the large inflows poured in the month of May, traders expected rupee to surge towards 74.50/75.00.
03 Jul 2020 08:27 PM
After 2 months of absolute lull, it took just 4.5 hours to wake everyone from their slumber. Wow, what a market!! Just when everyone thought that 75 – 76 is the new norm, markets gave a roaring thunder to challenge all standards.
02 Jul 2020 06:33 PM
Amidst a turbulent recovery, liesa distinction between real economy and the financial markets which has never been more noteworthy.
30 Jun 2020 05:31 PM
Things don’t seem to be working in favour of the cable given the flaring up of the fresh virus infections which is causing the delay in opening up of the economy and thus low fundamental economic data.