India Rupee Traded Lower; Yuan Slips After US Bans China Flights

India Rupee Traded Lower; Yuan Slips After US Bans China Flights

04 Jun 2020 10:08 AM
 

USD/INR

India rupee opened lower at 75.61 against its last close of 75.46. The Indian rupee traded lower against the dollar amid a Chinese yuan-led decline in Asian currencies after the U.S. banned passenger flights from China, further hurting the relationship between the two major economies. The S&P 500 Index climbed 1.4% to fresh three-month highs and the Nasdaq Composite Index added 0.8% to just shy of record highs. Fewer-than-expected job losses in the U.S. private sector, better-than-expected reading on a gauge of U.S. non-manufacturing activity. Benchmark Brent crude oil contract 1.4% lower at $39.25 per barrel, after hitting a near-three-month high yesterday.

EUR/USD

It’s a relatively busy day ahead on the economic calendar. Eurozone retail sales figures for April are due out later this morning. We are expecting quite dire numbers and very little influence on the EUR. Europe had been in lockdown mode in April, which should result in a marked fall in consumption, with non-essential businesses closed. The main event of the day will be the ECB press conference this afternoon. With the ECB expected to hold policy unchanged, ECB President Lagarde’s outlook on the economy and policy will be key. From elsewhere, any risk aversion would pin the EUR back on the day. At the time of writing, the EUR was down by 0.13% to $1.1218.

GBP/USD

It’s a relatively quiet day ahead on the economic calendar. May’s construction PMI is due out later today. While we will expect some support from a partial recovery, Brexit and COVID-19 remain key areas of focus for the Pound. Expect chatter across the news wires to influence. At the time of writing, the Pound was down by 0.28% to $1.2540.

USD/JPY

USD/JPY consolidates the previous day’s run-up to a multi-day high while declining to 108.90 at the start of Thursday’s Asian session. In doing so, the yen pair awaits fresh catalysts to extend the two-day run-up backed by risk-on sentiment. The US 10-year Treasury yields grew over six basis points (bps) to 0.75% whereas Wall Street stays firmly bid by the end of their Wednesday’s trading. At the time of writing, the Japanese Yen was flat at ¥108.90 against the U.S Dollar.

Important data releases today

Time

CCY

Event

Forecast

Previous

14:00

GBP

Construction PMI (May)

29.7

8.2

17:15

EUR

ECB Monetary Policy Statement

 

 

17:15

EUR

ECB Interest Rate Decision (Jun)

0.00%

0.00%

18:00

USD

Initial Jobless Claims

1,800K

2,123K

18:00

EUR

ECB Press Conference