On Friday , The Domestic unit (Rupee) seems commence Friday session with positive note as greenback continues to maintain southward way, with optimism over the rollout of vaccines and talk of new U.S. fiscal stimulus prompting risk-on trades. Today all eyes on RBI monetary policy outcome , there is no room for rate cut as inflation out of RBI comfortable zone. In system there is huge amount of liquidity which hamper inflation , it could be possibility Central Bank target CRR for control liquidity .
A fourth round of talks between the Indian government and 40 farmers' unions over divisive farm laws failed to make headway on Thursday, but a cabinet minister said they would continue discussions on Saturday.
Growth in India's dominant services industry lost some momentum in November as demand weakened, a private survey showed on Thursday, clouding hopes of a quick economic recovery from the COVID-19 pandemic's blow.
INTRADAY RANGE - 73.46 ( 73.68 - 74.05 ) 74.28
GLOBAL HIGHLIGHTS
Optimism over U.S. stimulus talks and bets on a successful roll-out of vaccines are leading traders to take bets on global growth and thus riskier currencies at the expense of the safe haven dollar, the world’s reserve currency, particularly with the Federal Reserve committed to keeping rates low for years.
This move lower in the dollar has occurred despite the latest employment data showing a slowdown in the jobs recovery, with Wednesday’s monthly ADP report showing private payrolls grew at their slowest pace since July in November.
EUR/USD at 1.2144, at levels not seen since April 2018, even with the European Central Bank widely expected to enhance its quantitative easing next week.
GBP/USD at $1.3453, remaining close to a three-month high Overnight pair hit $1.3500 mark. Sterling received a boost Wednesday as the U.K. approved a Covid-19 vaccine developed by Pfizer and BioNTech and said it would start vaccinating those most at risk early next week. However, the focus remains on the Brexit trade deal talks.
France warned Wednesday it could veto a trade deal between the U.K. and the European Union if it doesn’t like the terms of the deal, an intervention that puts pressure on EU negotiator Michel Barnier not to give too much ground.
Oil prices rose for a second day in a row as OPEC and its allies managed to announce a production hike without scaring the market — a development that underscored the cartel was finally learning from past mistakes.
Comments