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Published on 17/06/2019 9:48:09 AM | Source: Angel Broking Pvt Ltd

Fundamental Outlook 17 June 2019 - INR, EUR, GBP by Angel Broking Pvt Ltd

Posted in Currency Report| #Currency Tips #Angel Broking Pvt Ltd

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FUNDAMENTAL OUTLOOK

Key Highlights

* US FED signals possibility of rate cut

* ECB signals no rate moves until next year

* May steps down as leader of ruling party

Indian rupee

Indian Rupee depreciated by 0.3 percent last week while the Dollar Index  increased  by  0.55  percent.  The  RBI  changed  its  stance  to "accommodative"  from  "neutral"  last  week  and  cut  interest  rates for  the  third  time  in  a  row,  bringing  the  borrowing  rate  to  a  nine-year low of 5.75%.

Markets  expect  that  the  U.S.  Fed  might  move  towards  a  dovish stance  considering  the  slowdown  in  the  economy.  Weak  data  from US   pointed   towards   weakening   of   the   economy   and   further pressurized FED to trim the rates. Odds of a rate cut at next week’s meeting  are  around  18%,  while  at  the  next  meeting  in  July,  it  is more than 80%, according to the CME FedWatch Tool.

USDINRis expected tosidewaysin today’s session.

 

Euro

EURUSD   depreciated   by   0.5   percent   last   week   while   EURINR depreciated by 0.15 percent the same time frame.

"The  Euro  and  other  currencies  are  devalued  against  the  dollar, putting  the  U.S.  at  a  big  disadvantage,"  Trump  tweeted  without offeringany  evidence.  The  trade  war  also  had  its  impact  on  Yuan which  in  turn  supported  the  Euro.  Worsening  of  trade  situation might further support Euro.

EURINR is expected todepreciate in today’s session.

 

GBP

GBP  decreased  against  USD  by  0.5  percent  last  week  while  GBPINR appreciated by 0.2 percent.

May  stepped  down  as  leader  of  the  ruling  Conservative  Party  on Friday,  having  failed  three  times  to  win  parliament's  support  for  a European   Union   divorce   deal   that   was   supposed   to   steer   the country  smoothly  out  of  the  bloc  and  deal  with  Britain's  biggest political crisis in a generation.

Boris  Johnson  remains  the  odds-on  favourite  to  be  Britain's  next PM.  Nine  other  Tory  MPs  are  vying  to  succeed  May:  first  round  of voting  Thursday.  Second  to  fourth  rounds  next  week,  before  top two run-off.

GBPINR is expected totrade sidewaysintoday’s session.

 

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