Published on 19/07/2017 9:56:41 AM | Source: Angel Broking Pvt Ltd
GBPINR spot is expected to trade lower - Angel Broking
Yesterday, the Indian Rupee appreciated by 0.10 percent on account of weak US Dollar Index on strong Chinese economic data and doubts that the Federal Reserve would raise interest rates again this year. On the domestic front, sustained selling of the US Dollar by exporters and banks acted as a positive factor. Markets are still discounting the robust release of CPI and WPI inflation rate which came better than the expected levels. Also, the current reforms introduced in the economic system like the GST bill has led to infusion of huge foreign inflows. Today, USDINR spot is likely to strengthen.
Yesterday, EURINR spot surged by 0.83 percent as markets are busy speculating the event (ECB Monetary Policy Meeting) on Thursday of this week. Markets are not expecting a change in policy however they will pay close attention to President Draghi's remarks after his surprising comment in June that EZ deflationary pressures had been replaced by reflationary forces. A number of ECB members have recently noted that while deflation concerns have abated, there's still little evidence of inflation pressures forcing a rush towards policy normalization. Moreover, markets believe the ECB will indicate a scaling back of QE efforts at its Sept meeting. Today, EURINR spot is likely to trade higher.
Yesterday, GBPINR traded lower by 0.22 percent on account of disappointing release of inflation data form the nation.as Brexit meeting takes the Centre-stage. After an initial meeting last month where the structure of the talks was determined, Britain's Brexit minister, David Davis, met up with the EU's chief Brexit negotiator in Brussels ahead of four-days of discussions. Progress on citizens' rights is one of the three main issues that have to be resolved before the two sides can start talking about a wide-ranging free trade deal. Markets therefore are playing safe and waiting for cues so as to make trades accordingly. Today, GBPINR spot is expected to trade lower.
Yesterday, JPYINR traded surged by 0.40 percent. Traders play safe prior to the BOJ monetary policy meeting that is to take place later in the week. The BoJ recently stepped up its unconventional monetary policy, saying it would buy an unlimited amount of 10-year Japanese government bonds. It remains determined to keep 10-year JGB yields as close to zero as possible, thereby widening the spread in yields between Japan and other countries. Today, JPYINR spot is expected to trade in a range-bound manner.
To Read Complete Report & Disclaimer Click Here
Click here to open demat account
For More Angel Broking Pvt Ltd Disclaimer http://www.angelsecurities.in/disclaimer.aspx
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer