GBP/INR Continues to Decline, Next Support at 92.244

GBP/INR continues to decline on Tuesday, after tumbling 1.68% yesterday. Currently, the pair is trading at 92.427, down 0.26% as of 5:50 AM UTC. The sterling has lost its gains since January 28. The next support level is at around 92.244, the lowest level since January 20.

The pound is under pressure amid hard Brexit worries after UK Prime Minister Boris Johnson said that Britain shouldn’t necessarily abide by Europe’s single market rules. Elsewhere, the Indian rupee is recovering along with other Asian markets as the fears of the coronavirus outbreak cooled.

Nevertheless, the virus doesn’t seem to slow, as China announced another increase in the number of cases and deaths. On Tuesday morning, China said that 425 had died because of the new strain of a coronavirus, and 20,438 cases had been confirmed, up 18% from the previous day.

The prevalence of the virus is much lower outside China, with over 185 being reported in more than 20 countries and jurisdictions.

Despite the figures, markets consider that the virus is under control, at least for now.

The rupee continues to benefit from positive manufacturing data published yesterday. Indian manufacturing purchasing managers’ index (PMI) accelerated at its fastest pace in about eight years this month.

As for the sterling, it continues to be under pressure on fears of a hard Brexit. Yesterday, Johnson said that there was no need for Britain to follow the European Union’s rules. He suggested that the UK should obtain a Canada-style free trade deal. The PM stated:

“We have often been told that we must choose between full access to the EU market, along with accepting its rules and courts on the Norway model, or an ambitious free trade agreement, which opens up markets and avoids the full panoply of EU regulation, on the example of Canada.”

However, Michel Barnier, the European Commissioner tasked with negotiating the trade deal with the UK, said that Britain had to follow the rules if it wants to benefit from the single market perks. He said that Johnson had promised last year to take the European standards seriously.

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