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.
12 Aug 2020 07:38 PM
We keep coming back to the big surge in forex reserves in recent weeks and months. In the week ended 31stJuly, the reserves went up by an astounding record breaking $11.938 bio.
10 Aug 2020 05:43 PM
After the Covid-19 induced collapse in Feb’20 and Mar’20, equity markets across the globe have been making stupendous gains
06 Aug 2020 12:41 PM
Repo rate unchanged, inflation worry outweighs economic stress
04 Aug 2020 05:28 PM
July showed a good performance for Pound along with Euro against the greenback but against the Indian Rupee, the pound is attempting to go past 98.55, a level seen on Oct 11 last year when the Brexit talks were delayed from becoming a deal.
03 Aug 2020 04:49 PM
In our note of 16th June titled “The Bountiful Fed”, we had mentioned that the largesse of Fed releasing large amount of dollars into the system led to the weakening of the currency
31 Jul 2020 08:01 PM
EURUSD touched a 2-year peak today. Conversely, dollar index plummeted to its lowest level since May 2018.