pkr-coins-forex-performance - PKR

Thursday’s trade saw USD/PKR within the range 154.60-154.81, while the pair closed flat at 154.60. Emerging market currencies reacted in a subdued manner to the signing of the “Phase One” deal, since the majority of issues covered by the agreement had been anticipated since the summer.

However, the deal left some tariffs intact and provided no clarity on how it would be enforced, while also showing no real progress on a number of bribery aspects. Some analysts even expressed skepticism that purchase targets, highlighted in the agreement, were achievable.

On the other hand, US Vice President Mike Pence added to investor optimism that further progress was indeed being made, as he noted “Phase Two” negotiations had already been initiated.

The US Dollar Index was 0.01% weaker to 97.30 in late Asian trade on Friday.

From a macroeconomic perspective, today market players will be paying attention to US housing data at 13:30 GMT. The number of housing starts in the country probably rose to 1.378 million units in December, according to market expectations, from the seasonally adjusted annual rate of 1.365 million in November.

Meanwhile, the number of building permits probably dropped to 1.465 million in December from an annual level of 1.474 million in November. In case a higher-than-expected figure for either of the two indicators is reported, this would have a moderate bullish effect on the USD.

At 14:00 GMT Philadelphia Federal Reserve Bank President Patrick Harker is expected to speak on “Monetary policy” during New Jersey Bankers Association Economic Leadership Forum at the Palace at Somerset Park. His remarks will be closely watched.

A separate report by the Board of Governors of the Federal Reserve at 14:15 GMT may show industrial production in the country decreased at a monthly rate of 0.1% in December, according to expectations, after expanding 1.1% in November. A larger-than-expected monthly decrease in output would have a moderate bearish effect on the USD, as it would suggest lower inflationary pressure.

The monthly survey by Thomson Reuters and the University of Michigan may show that consumer confidence in the US remained unchanged in January. The preliminary reading of the consumer sentiment index probably stood at 99.3 in January, matching the final reading in December. In case the gauge met or even exceeded expectations, this would support USD demand due to positive implications regarding consumer expenditures. The report is expected at 15:00 GMT.

At 17:45 GMT Fed’s Vice Chairman for Supervision, Randal Quarles, will testify on “Bank Supervision” at the American Bar Association Banking Law Committee Annual Meeting.

USD/PKR was stable at 154.60 in late Asian session on Friday.


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