USD/INR to remain elevated on high oil prices – Mizuho

FXStreet Insights Team FXStreet

The USD/INR opened at 72.555 in June. Toward the end of the month, the pair remained high, with trading closing at 74.26 on June 29. USD/INR is expected to remain high in July, according to analysts at Mizuho Bank.

The rise of crude oil prices is a negative factor for the Indian rupee

“It is necessary to carefully observe the impact of the July employment statistics and the price indices of the US on US monetary policy outlook. However, the dot plot was modified at the FOMC meeting in June, making it difficult for expectations for an interest rate hike to diminish, as they did in May.”

“If crude oil prices remain high, as currently, the USD/INR is expected to also remain high.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.