- Pound (GBP) trades mixed following mixed labour data
- BoE Andrew Bailey due to speak
- Indian Rupee (INR) rises despite surging covid cases
- WTI slips lower, extends losses
The Pound Indian Rupee (GBP/INR) exchange rate is. The pair settled +0.1% lower at the start of the week at 100.32. At 08:45 UTC, GBP/INR trades -0.35% at 99.98 after falling through key support at 100.00
The Pound traded mixed across the board in the previous session. Covid statistics were upbeat with just 17 covid deaths recorded, the lowest level since September last year. However, Prime Minister Boris Johnson warned that the third wave of covid infections sweeping across Europe could well hit Britain.
UK jobs data has revealed a mixed picture of the UK labour market. The unemployment figure unexpectedly dropped to 5% in the three months to January, down from 5.1% in December and well below the 5.2% forecast. The improvement in the unemployment rate came despite the lockdown conditions. Still, the unemployment rate is expected to rise to 6.5% when the furlough scheme is wound down.
However, the claimant count which is provides a more accurate picture of the jobs market, jumped sharply higher to 86.6k in February, well up from -20.8k in January.
The Indian Rupee has been well supported so far this month supported by foreign fund inflows and weaker US crude prices. Although a subdued domestic equity market has limited gains.
Foreign portfolio investors have bought up close to $2.5 billion worth of Indian equities so far this month which is underpinning the Rupee.
Furthermore, crude oil prices dropped over 6% last week and were heading lower again at the start of the week amid rising concerns over futures demand as parts of Europe heads back into lockdown. West Texas Intermediate trades -1.3% at $60.77. API data is due later.
There is no high impacting Indian data due today. However investors will keep close eye on covid developments in the country as new daily infections have risen steeply over the past few days.
