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Published on 21/08/2019 10:23:02 AM | Source: Angel Broking Pvt Ltd

Fundamental Outlook 21 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 0.14 percent yesterday while the Dollar decreased by 0.16 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. 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. Jackson Hole Symposium will be held in this week as well as the meeting minutes from FED will also be out. Markets are expecting further clues on rate cuts from these events.

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

 

Euro

EURUSD appreciated by 0.21 percent yesterday while EURINR appreciated by 0.06 percent the same time frame.

Political turmoil in Italy, as Deputy PM, Matteo Salvini, said that a 50B euro budget is necessary in 2020 to bring about a “shock” fiscal stimulus program, while PM Conte resigned after Salvini broke their coalition government and called for an election. Salvini, later declared that he is willing to stay in the government to approve the budget.

EURINR is expected to appreciate in today’s session.

 

GBP

GBP increased against USD by 0.35 percent yesterday while GBPINR depreciated by 0.49 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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