GBP/INR continues to trade in a narrow range, breaking below the support line of an uptrend that started at the end of September. At the time of writing, one British pound buys 98.655 Indian rupees, up 0.05% as of 7:05 AM UTC. The pair closed lower in the previous two sessions after failing to break the resistance near 99.000.
Later today, India will report on its economic performance in the second quarter of the fiscal year 2021. The Reserve Bank of India (RBI) expects the gross domestic product (GDP) to have contracted by 8.6% in the three months to September, while independent economists anticipate a 10% contraction. In the June quarter, the Indian economy tumbled by a record 23.9% following the emergence of the COVID pandemic and the unprecedented lockdown measures.
Yesterday, the Centre for Monitoring Indian Economy said that the unemployment rate in the country maintained at 7.8% last week, and the labor participation rate kept at 39.3%.
Pound Waiting for Brexit Talks Outcome
As for the pound, it continues to be in wait-and-see mode as the UK and the European Union are still negotiating the post-Brexit relationship. The two sides haven’t reached consensus on the three main issues that include fisheries. Later today, EU chief negotiator Michel Barnier is going to discuss with some of the bloc’s ministers responsible for fisheries, an EU official revealed. Representatives of France, Germany, Spain, Belgium, Denmark, Ireland, and the Netherlands will be present at the meeting. The mentioned countries will gain or lose the most from the final agreement on fisheries. The official told media:
“Michel Barnier will speak to some fisheries ministers tomorrow. It’s part of his usual contacts with Member States. It is not an “urgent” meeting. It is to discuss the stage of play of the negotiations.”
UK finance minister said yesterday that a deal is possible but not at any cost, a view that was previously expressed by UK officials on repeated occasions.
Meanwhile, Prime Minister Boris Johnson wants to resume face-to-face meetings with European negotiators, but the decision belongs to Brussels. EU sources told BBC that face-to-face meetings would indeed resume in London.