GBP/INR Moving Sideways, Waiting for Clues

GBP/INR has been moving sideways since Monday, after failing to maintain above 93.000.

Currently, GBP/INR is trading at 92.928, down 0.06% as of 6:20 AM UTC.

If the sterling fails to break the current resistance, then it might see another downtrend for the next few days. The pair has tried to break a resistance at about 93.300 for a second time, after failing to do so last Friday. Thus, the price has formed a double top pattern, which might anticipate a bearish move.

India’s GDP Growth Likely Below 5%

The main topics impacting the pair are the coronavirus epidemic and the post-Brexit trade talks between Britain and the European bloc.

Besides this, the rupee is waiting for the Indian economy to show any signs of revival after the central bank has cut its interest rate several times last year while the government boosted stimulus. Earlier today, a Reuters survey showed that India’s gross domestic product (GDP) has likely accelerated in the three months to December after its worst performance in six years in the previous three months.

Annual GDP likely increased to 4.7% from 4.5% in the three months to September. The overwhelming majority of polled economists agree that growth for the December quarter was at 5% or below.

Barclays stated in their recent weekly report:

“A modest recovery in the agriculture sector, coupled with a normalisation in weather conditions amid elevated government spending likely pushed growth higher.”

Nevertheless, the revival effort might be hit by excessive inflation, which surged to 7.59% in January.

Sakshi Gupta, a senior India economist at HDFC Bank, said that the economy was way below its potential.

“Even the lead indicators don’t seem to be entering a more sustainable phase of economic recovery right now, or at least in the near future,” she concluded.

The Reserve Bank of India (RBI) would have cut the interest rate again, but it can’t do this because of the high inflation, leaving the economic support in the hands of the government. Because of this, Gupta is not too optimistic about potential healthy growth in the economy.

“We are looking at a very slow and gradual recovery by the end of the year but not in the near-term,” she said.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.