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Published on 22/10/2019 9:53:59 AM | Source: Angel Broking Pvt Ltd

Fundamental Outlook 22 Oct 2019 - INR, EUR, GBP by Angel Broking

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

FUNDAMENTAL OUTLOOK

Key Highlights

* Brexit uncertainty continues

* US FED to buy $60 billion T-bills from Oct’19

* US and China exhibit progress in trade talks

 

Indian rupee

Indian Rupee depreciated by 0.5 percent last week while the Dollar index decreased by 0.68 percent during the same time frame. FII have bought nearly $8.29 billion in Indian equities and $4 billion in debt during the current year.

US FED started purchasing T-bills worth $60 billion per month from 15th Oct’19 on a monthly basis till the second quarter of 2020. This move was induced by the US FED in order to infuse liquidity in to the money markets. Meanwhile, IMF lowered its global growth forecast from 3.2 percent in July to 3 percent. US and China reached a partial deal. In the meeting US has decided to suspend next tariff hikes on China on 250 billion of Chinese imports. In return China would purchase $40-50 billion worth of American farm products such as soybeans and Pork among others. However, China threatened retaliation if Washington enacts the Hong Kong Bill that would require an annual review of whether the city is sufficiently autonomous to justify its special trading status.

USDINR is expected to appreciate in today’s session

 

Euro

EURUSD appreciated by 0.8 percent last week while EURINR depreciated by 1.24 percent the same time frame.

CPI from Euro zone came in at 0.8 percent for Sep’19 against market expectations of 0.9 percent. WPI from Germany came in at - 0.4 percent for Sep’19 against market expectations of -0.2 percent. German economic sentiment came in at -22.8 for Sep’19 against market expectations of -27.

EURINR is expected to appreciate in today’s session.

 

GBP

GBP increased against USD by 1.57 percent last week while GBPINR depreciated by 2.07 percent.

UK secured a Brexit deal with EU on 17th Oct’19. PM Boris Johnson must now secure approval for the agreement in an extraordinary session of parliament on 19th Oct, which would pave the way for an orderly departure on Oct. 31. Meanwhile, Northern Ireland’s Democratic Unionist Party has refused to support the deal saying it’s not in Northern Ireland’s best interest. CPI from UK came in at 1.7 percent for Sep’19 against market expectations of 1.8 percent.

GBPINR is expected to move sideways in today’s session.​​​​​​​

 

 

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