Tuesday, 28 November 2017

Global Update For Currency Market And It’s Fundamental Outlook



GLOBAL UPDATES

· Asian markets open on a flattish note
·Germany agrees to pursue grand coalition
·US housing sales data for October beats expectations
·Tensions regarding Northern Ireland border to affect Brexit negotiations

FUNDAMENTAL OUTLOOK

Indian rupee USDINR spot appreciated by 0.31 percent on Monday despite dollar index rising by 0.13 percent in the yesterday’s trading session. This was on account of better than expect home sales data In US for the month of October. Housing sales is one of the major factors the affect the US economy. Also, the Indian equity market closed higher for eight consecutive sessions. S&P keeps India’s rating unchanged at BBB-with a stable outlook.
USDINR spot is expected to appreciate as dollar would be cautious on account of Fed Chair designate Jerome Powell speaking before the US Senate Committee.

Euro

Yesterday, EURINR spot appreciated by 0.46 on account of strength seen in US dollar during the trading session. Euro remained cautious despite the announcement to pursue Grand Coalition in Germany. EURINR is expected to trade sideways
in the coming trading session.





Sterling pound

Yesterday, GBPINR spot appreciated by 0.45 percent on account of strong dollar and tensions regarding Brexit negotiations. UK, Prime Minister Theresa May was given ultimatum to resolve the Northern Ireland border issue with Ireland in order to proceed ahead with Brexit negotiations. GBPINR spot is expected to move sideways in the coming session.

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