- USD/INR extends the previous recovery from multi-day high.
- The absence of Chinese warnings on phase-one keeps Asian traders hopeful.
- India’s Q2 GDP, full market reaction to the US-China tussle will be in the spotlight.
USD/INR takes the bids to 71.72 during the pre-European session trading on Friday. The quote seems to benefit from the lack of a negative response to the United States (US) President’s passage of the Hong Kong Human Rights Democracy Act.
China’s initial reaction to US President Donald Trump’s passage of the act was very harsh and signaled to ban the writers of the bill. Though, diplomats from both the countries, namely the US and China, stay confident over signing a partial, phase-one, trade deal in the coming weeks, as per the Wall Street Journal (WSJ).
It’s worth mentioning that the absence of the US traders due to the Thanksgiving Day holiday and a mild risk-off also favors the USD/INR pair ahead of the key growth numbers from India.
That said, Indian equity markets are on the negative side with BSE SENSEX flashing -0.50% mark while the US 10-year Treasury yields taking rounds to 1.77% by the press time.
India’s September quarter Gross Domestic Product (GDP) data, forecast 4.7% versus 5.0% prior, is up for publishing at 12:00 GMT. Reuters’ poll cites increased possibilities of witnessing multi-quarter low growth figures while saying, “If the latest figure for expansion of gross domestic product is 4.7% or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3% in January-March 2013.”
Other than the key data from India, investors will keep eyes on how the market will respond to the US-China jitters when the US traders return to the desk, even for a half session, on Friday.
Technical Analysis
A two-week-old falling trend line around 71.77 holds the key to pair’s run-up towards 72.00 round-figure. On the downside, recent lows near 71.20, comprising 61.8% Fibonacci retracement of the current month upside, challenges short-term sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.