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Published on 20/08/2019 9:42:59 AM | Source: Angel Broking Pvt Ltd

Fundamental Outlook 20 Aug 2019 - INR, EUR, GBP by Angel Broking

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

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FUNDAMENTAL OUTLOOK

Key Highlights

* India’s inflation remains muted

* US China trade talks progressing well

* Hard Brexit uncertainties increases

 

Indian rupee

Indian Rupee depreciated by 0.4 percent yesterday while the Dollar increased by 0.21 during the same time frame. India CPI inflation eases to 3.14% in July’19. RBI decided to cut repo rate by 35 bps in its latest meeting. It lower India’s GDP growth rate for FY20 to 6.9 percent from 7 percent.

US retail sales data came at 0.7 percent for Jul’19 against market expectations of 0.3 percent. Meanwhile, US announced on last Tuesday that it would delay the introduction of 10% tariffs on a range of Chinese goods sold in the US, including technology products such as laptops, mobile phones and game consoles. The delay came in after Trump had announced to slap additional 10 percent tariffs on $300 billion of Chinese goods earlier this month. Post this announcement US President also mentioned that the trade talks between two nations are going well and a Sep’19 meeting is still on the cards. Also, US Commerce department extends deadline for Huawei until Nov’19.

USDINR is expected to move sideways in today’s session

 

Euro

EURUSD depreciated by 0.12 percent yesterday while EURINR depreciated by 0.49 percent the same time frame.

Draghi said the euro zone's central bank was looking at interest rate cuts, fresh bond buys and new policy guidance to lift persistently low inflation, which has undershot its target for the past six years. Also, July inflation was much worse-than-anticipated, down by 0.5% MoM and up by just 1.0% YoY in July.

EURINR is expected to appreciate in today’s session.

 

GBP

GBP decreased against USD by 0.2 percent yesterday while GBPINR depreciated by 0.21 percent.

The British Pound was undermined by renewed concerns about a hard-Brexit, as Labor Leader, Jeremy Corbyn insisted on the need of a general election and vowed to do whatever it takes to prevent leaving the EU without a deal. PM Johnson will be meeting German Chancellor Angela Merkel and French President Emanuel macron next Thursday.

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

 

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