Currency Live https://currencylive.com/news Wed, 08 Jul 2020 17:33:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.4.2 https://currencylive.com/news/wp-content/uploads/2020/03/FavIcon@2x-100.jpg Currency Live https://currencylive.com/news 32 32 GBP/AUD: Aussie dips as ACT reports 3 new coronavirus cases https://currencylive.com/news/103578-gbp-aud-aussie-dips-as-act-reports-3-new-coronavirus-cases/ Wed, 08 Jul 2020 17:33:10 +0000 https://currencylive.com/news/?p=101801 The British pound was higher against the Australian dollar on Wednesday. Australia Central Territory reports 1st coronavirus cases in a month China to restrict visa for US officials in tit-for-tat response UK Chancellor unveils Summer budget update USA reports 3 million virus cases GBP/AUD was up by 29pips (+0.16%) to 1.8077 as of 3pm GMT. […]

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The British pound was higher against the Australian dollar on Wednesday.

  • Australia Central Territory reports 1st coronavirus cases in a month
  • China to restrict visa for US officials in tit-for-tat response
  • UK Chancellor unveils Summer budget update
  • USA reports 3 million virus cases

GBP/AUD was up by 29pips (+0.16%) to 1.8077 as of 3pm GMT. This week the British pound-Australian dollar exchange rate is higher by +0.50%.

The currency did briefly touch 1.81 in a mostly positive day but eventually stabilised above 1.805. Yesterday it had risen +0.78%.

GBP: VAT and Stamp duty cuts in the UK

Sterling mostly shrugged off the new measures unveiled by UK Chancellor Rishi Sunak, having already priced in tax cuts over the past week. On top of a £9 billion ‘kickstart’ scheme for jobs and a voucher scheme for restaurants, the government will cut VAT on the hospitality and tourism industry and it removed stamp duty on home purchases under £500,000.

Pubs and restaurants only just reopened on July 4th and it is feared many will not survive the lost income over that period without significant government support. The property tax change means most Brits buying a new home in the next year will pay no stamp duty.

AUD: ACT gains new virus cases

The dual headwind of rising virus cases and deteriorating US-China relations are holding the Australian dollar back. Against the dollar (AUD/USD), 0.70 remains a significant barrier.

Australia’s central territory (ACT) reported three new cases of the coronavirus, brought by travellers from Melbourne. The Victoria state borders have already been closed.

On Wednesday China imposed visa restrictions on some US officials for their role in the Tibet issue. It was a tit-for tat response the US imposing visa restrictions on Chinese officials over roles in the detainment of Uighur Muslims.

A rise in US coronavirus cases above 3 million for the first time unnerved equity markets and the Aussie dollar too. The mood did recover later on when Vice President Pence’s press conference for the White House virus taskforce had a more upbeat tone than scientific advisors like Dr Fauci. There is some reason for optimism hidden within the higher overall cases, notably a big fall in New York virus numbers.

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GBP/EUR: Pound slips after Sunak ‘kickstart’ and voucher schemes unveiled https://currencylive.com/news/103577-gbp-eur-pound-slips-after-sunak-kickstart-and-voucher-schemes-unveiled/ Wed, 08 Jul 2020 17:07:04 +0000 https://currencylive.com/news/?p=101799 The British pound is lower against the euro on Wednesday. Rishi Sunak unveils UK Summer budget Barnier: “Useful discussion with UK’s Frost” New French PM Castex: “There won’t be another lockdown” Gold reaches 9-year high above $1800 per oz. in flight to quality GBP/EUR was down by 18 pips (-0.16%) at 1.1103 as of 3pm […]

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The British pound is lower against the euro on Wednesday.

  • Rishi Sunak unveils UK Summer budget
  • Barnier: “Useful discussion with UK’s Frost”
  • New French PM Castex: “There won’t be another lockdown”
  • Gold reaches 9-year high above $1800 per oz. in flight to quality

GBP/EUR was down by 18 pips (-0.16%) at 1.1103 as of 3pm GMT. The British pound-euro exchange rate is flat at +0.03% this week.

The currency pair was rangebound following the spurt higher yesterday with 1.11 capping the downside and a ceiling at 1.115. Yesterday it had gained +0.72%.

GBP: Pound drifts lower after Sunak budget

A surge in the pound yesterday as well as gains made last week had already priced in most of today’s mini Summer budget from UK Chancellor Rishi Sunak. The tax cuts were the signature economic change with some surprise titbits including a £9 billion ‘kickstart’ scheme for jobs and a voucher scheme for restaurants.

The government will cut VAT on the hospitality and tourism industry and it removed stamp duty on home purchases under £500,000. The aim is to bolster the economy after a catastrophic 25% collapse across March and April.

On the Brexit front, the mood music continued to sound friendlier with EU Chief negotiator Michel Barnier saying he had a “useful discussion” with the UK’s David Frost yesterday.

EUR: Euro gets the nudge as gold rallies

The euro seemed to get the nudge on the pound in a slightly more risk-off environment that saw European stock markets close mostly lower. News that the United States reached 3 million cases of coronavirus according to John Hopkins university dented recent enthusiasm about the global economic reopening.

Within Europe the idea that a second wave will not result in new lockdowns like in March sets the stage for a brighter economic outlook. New French Prime Minister Jean Castex said,“There won’t be another coronavirus lockdown like we had in March.”

The more risk-off tone saw the price of gold rally to a 9-year high, with spot prices topping $1800 per oz for the first time since 2011.

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AUD/USD: Aussie Rebounds As Investors Move Past US – China Tensions https://currencylive.com/news/103576-aud-usd-aussie-rebounds-as-investors-move-past-us-china-tensions/ Wed, 08 Jul 2020 15:03:32 +0000 https://currencylive.com/news/?p=101795 Perceived riskier Australian Dollar (AUD) picks up off session lows as risk sentiment recovers US-Chinese tensions and Fed covid-19 concerns are shrugged off as the Nasdaq surges to fresh all-time highs US jobless claims in focus tomorrow Australian Dollar US Dollar (AUD/USD) exchange rate targets US$0.70 The Australian Dollar US Dollar exchange rate has rebounded […]

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  • Perceived riskier Australian Dollar (AUD) picks up off session lows as risk sentiment recovers
  • US-Chinese tensions and Fed covid-19 concerns are shrugged off as the Nasdaq surges to fresh all-time highs
  • US jobless claims in focus tomorrow
  • Australian Dollar US Dollar (AUD/USD) exchange rate targets US$0.70
  • The Australian Dollar US Dollar exchange rate has rebounded firmly off session lows of US$0.6922 to trade at session highs of US$0.6975. AUD/USD is paring losses from the previous session and has rallied for the past seven sessions in eight.

    Risk sentiment performed a strong reversal on Wednesday. In early trade concerns over rising US – China tensions dragged on risk sentiment and the riskier Aussie Dollar. Reports circulated that the White House was considering undermining the Hong Kong Dollar’s peg against the greenback as part of efforts to punish China over its national security law in Hong Kong.

    Adding to the down beat mood early on, were concerns from Federal Reserve policy makers who warned that rising US coronavirus cases could hamper the economic recovery.

    However, these anxieties were overshadowed as the US session progressed. Optimism surrounding the economic recovery drowned out geopolitical tensions and coronavirus numbers, even as the US surpassed 3 million cases. The US Nasdaq index rallied to a fresh record high.

    Yesterday, data showed that the number of US job vacancies in May was significantly higher than what analysts had forecast, which is helping to underpin sentiment and keep the safe haven US Dollar weak ahead of tomorrow’s jobless claims.

    US jobless claims have become on the most closely watched macro data releases for timely insight into the heath of the US labour market. Analyst are expecting the number of initial claims to fall again to 1.3 million.

    There has been little in the way of data from Australia over recent sessions. The RBA’s non action earlier in the week was unsurprising. Although the central bank remains poised to help further if needed.

    Aussie Dollar investors will continue to watch coronavirus headlines after Melbourne, the second largest city went back into lockdown. Any signs that the outbreak hasn’t been contained could drag on the Australian Dollar.

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    USD/INR: Indian Rupee Falls As Finance Ministry Confirms -4.5% Contraction Expected in FY21 https://currencylive.com/news/103575-usd-inr-indian-rupee-falls-as-finance-ministry-confirms-4-5-contraction-expected-in-fy21/ Wed, 08 Jul 2020 11:22:51 +0000 https://currencylive.com/news/?p=101793 Indian Rupee (INR) under pressure as risk sentiment remains weak, Sensex trades lower Finance Ministry sees early signs of recovery in areas no longer under lockdown US Dollar (USD) advances on safe haven flows after Federal Reserve officials warn over economic recovery US Dollar Indian Rupee exchange rate (USD/INR) extends gains for 2 straight session […]

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  • Indian Rupee (INR) under pressure as risk sentiment remains weak, Sensex trades lower
  • Finance Ministry sees early signs of recovery in areas no longer under lockdown
  • US Dollar (USD) advances on safe haven flows after Federal Reserve officials warn over economic recovery
  • US Dollar Indian Rupee exchange rate (USD/INR) extends gains for 2 straight session
  • The US Dollar Indian Rupee exchange rate settled on Tuesday +0.2% at 74.81 as the pair continues to trade around levels last seen in March. At 10:15 UTC, USD/INR trades +0.3% at 75.05. This is at the top end of the daily traded range.

    Risk sentiment continues to weigh on demand for the riskier Indian Rupee. Fears of a resurgence in coronavirus cases, in addition to escalating tension between US and China, have added to the risk off mood.

    The White House is reportedly weighing up a proposal to undermine the Hong Kong Dollar’s peg against the US Dollar. The move would be in response to recent moves by China to chip away at freedom in financial hub Hong Kong. The proposal hasn’t gained much traction yet, but if it were to be approved China would almost certainly respond.

    Fears of surging coronavirus numbers are also boosting the safe haven US Dollar. Total cases in the US have reached 3 million. Federal Reserve officials warned that the rising number of coronavirus cases could negatively impact the fragile economic rebound.

    Looking ahead there is no high impacting US data due to be released today. Investors will look ahead to US initial jobless claims data that well be released tomorrow. The jobless claims numbers will come after Tuesday’s JOLT job vacancy data for May, which beat forecasts.

    The Indian Sensex trades lower snapping a 5-day winning streak. Foreign investors are net sellers adding to the Rupee’s woes.

    However crude oil also traded 0.4% lower at $40.50, which is supportive of the Rupee as India is a buyer of oil.

    Looking ahead the Rupee could find itself supported after the finance ministry reported “green shoots” of recovery emerging in areas where lockdown restrictions have been eased. The report reiterated the International Monetary Fund’s forecast of a -4.5% economic contraction in fiscal year 2021.

     

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    USD/PKR: Pakistan Rupee Holds Steady As Online Sales Rise https://currencylive.com/news/103574-usd-pkr-pakistan-rupee-holds-steady-as-online-sales-rise/ Wed, 08 Jul 2020 10:07:41 +0000 https://currencylive.com/news/?p=101791 Pakistani Rupee (PKR) stabilises after falling in the previous session, risk sentiment remains weak Pakistan’s digital economy sees huge uplift in online sales US Dollar (US Dollar) holds gains as Federal Reserve officials warn over rising covid-19 cases knocking the fragile economic rebound US Dollar Pakistani Rupee (USD/PKR) exchange rate remains above 167.00 The US […]

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  • Pakistani Rupee (PKR) stabilises after falling in the previous session, risk sentiment remains weak
  • Pakistan’s digital economy sees huge uplift in online sales
  • US Dollar (US Dollar) holds gains as Federal Reserve officials warn over rising covid-19 cases knocking the fragile economic rebound
  • US Dollar Pakistani Rupee (USD/PKR) exchange rate remains above 167.00
  • The US Dollar Pakistani Rupee exchange rate settled +0.5% at 167.25 on Tuesday. At 09:15 UTC, USD/PKR trades -0.05% at 167.12.

    Whilst risk sentiment across the global financial markets was broadly weaker, domestic data is underpinning the economy.

    Pakistan has seen a huge lift in online sales as the coronavirus pandemic restricted consumers ability to go into shops. Pakistan had been investing in expanding its digital economy and promoting online businesses even before the coronavirus crisis. According to the Chief Marketing Officer at Pakistan’s largest online shopping store, online orders have grown 9-fold since March.

    The State Bank of Pakistan said that the move to electronic payments could boost both consumption and trade. The central bank suggested that this could help lit the Pakistani economy by as much as 7% through the creation of 4 million jobs and adding $36 billion to the economy by 2025.

    Strong risk aversion in the previous session saw investors sell out of riskier currencies such as the Rupee, instead buying into the safe haven US Dollar. The greenback rallied across the board.

    The US Dollar remains well supported today as risk sentiment remains weak. Concerns over rising coronavirus numbers in the US linger as total cases surge past 3 million. California and Texas each see over 10,000 new daily cases.

    Federal Reserve officials warned that the rising number of coronavirus cases in the US could damage the economic recovery. These comments also hit risk sentiment, overshadowing strong JOLTS job opening data earlier in the session.

    Today there is no high impacting US data. Investors will look ahead to the release of US jobless claims figures tomorrow for further clues of the progress of the economic recovery.

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    GBP/AUD: Pair Above 1.80 On US – Chinese Tensions, Mini Budget Up Next https://currencylive.com/news/103573-gbp-aud-pair-above-1-80-on-us-chinese-tensions-mini-budget-up-next/ Wed, 08 Jul 2020 09:00:54 +0000 https://currencylive.com/news/?p=101789 Pound (GBP) holding gains from the previous session amid optimism that a Brexit trade deal could still be achieved Chancellor Rishi Sunak to lay out his spending plans to guide the UK economy out of the coronavirus crisis Australian Dollar (AUD) under pressure on coronavirus anxieties and US – Chinese tensions Pound Australian Dollar (GBP/AUD) […]

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  • Pound (GBP) holding gains from the previous session amid optimism that a Brexit trade deal could still be achieved
  • Chancellor Rishi Sunak to lay out his spending plans to guide the UK economy out of the coronavirus crisis
  • Australian Dollar (AUD) under pressure on coronavirus anxieties and US – Chinese tensions
  • Pound Australian Dollar (GBP/AUD) exchange rate has rallied back over 1.80.
  • After posting a 0.8% gain in the previous session, the Pound Australian Dollar exchange rate is extending those gains on Wednesday. At 08:15 UTC, GBP/AUD trades +0.05% at 1.8060.

    The Pound surged versus all of its major peers in the previous session on renewed Brexit optimism. Hints from Chief EU negotiator Michel Barnier that the EU could be willing to compromise on EU fishing rights has boosted hopes that a post Brexit trade deal is still achievable. This has been a key sticking point in negotiations along with the so-called level playing field.

    Investors will now turn their attention to the Chancellor, Rishi Sunak’s mini budget. The Chancellor will outline the government’s spending plans and relief package. Jobs are expected to be a key focus in addition to a stamp duty holiday to inject movement int the housing market. Speculation is also swirling that Rishi Sunak could extend the business rates holiday in some targeted sectors, such as leisure and hospitality, in addition to targeted VAT cuts. A strong Simmer Statement could lift the Pound higher.

    The domestic picture in Australia weighed on the Aussie Dollar on Tuesday and continues to do so today. Ongoing anxiety over a second wave of coronavirus in Victoria which has seen Melbourne go back into lockdown for 6 weeks.

    Fears are growing that renewed lockdown orders could put the brakes on economic activity and the economic recovery.

    Reports that the White House is considering breaking the Hong Kong peg to the US Dollar as a punishment to China over the national security law is also weighing on the Aussie Dollar, which is not only a proxy for China, but also risk sensitive.

     

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    EUR/USD: Euro Rises Despite Christine Lagarde’s Hints at Return to Wait and See Mode https://currencylive.com/news/103572-eur-usd-euro-rises-despite-christine-lagardes-hints-at-return-to-wait-and-see-mode/ Wed, 08 Jul 2020 08:00:14 +0000 https://currencylive.com/news/?p=101779 Euro (EUR) pares losses from previous session after European Commission cut the region’s economic growth forecasts ECB President Christine Lagarde hints at inaction in next week’s ECB meeting US Dollar (USD) remains supported on coronavirus fears, which were further fuelled by Federal Reserve policymakers’ concerns Euro US Dollar exchange rate (EUR/USD) pares losses from the […]

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  • Euro (EUR) pares losses from previous session after European Commission cut the region’s economic growth forecasts
  • ECB President Christine Lagarde hints at inaction in next week’s ECB meeting
  • US Dollar (USD) remains supported on coronavirus fears, which were further fuelled by Federal Reserve policymakers’ concerns
  • Euro US Dollar exchange rate (EUR/USD) pares losses from the previous session but remains capped by US$1.13
  • The Euro US Dollar exchange rate settled on Tuesday -0.3% at US$1.1272. At 07:15 UTC, EUR/USD trades +0.2% at US$1.1290.

    The Euro was under pressure in the previous session after the European Commission cut its economic outlook for the region again. In the Summer Economic forecasts, the EC predicted that the Eurozone economy will shrink by -8.3% in 2020, rebounding by 5.8% in 2021. Just in May, the EC had predicted -7.4% contraction and a 6.1% rebound in 2021. The moderated forecasts dragged on demand for the common currency.

    Today, the Euro is pushing higher despite European Central Bank President Christine Lagarde hinting that she will press the pause button on stimulus at next week’s ECB meeting. In an interview with the Financial Times Christine Lagarde as good as confirmed that the ECB will switch back to its wait and see mode to asses the effectiveness of action taken so far. She also pushed for further fiscal stimulus from governments across the region.

    There is no high impacting Eurozone data due today. Investors will look ahead to tomorrow’s Eurogroup meeting.

    The US Dollar rallied in the previous session and is holding those gains in early trade on Wednesday as coronavirus concerns continue to weigh on risk sentiment and geopolitical fears also pick up.

    The Trump administration is reportedly weighing up a proposal to undermine Hong Kong’s US Dollar peg to punish China for the recent national security law which limits political freedom in the financial hub. Tension are already elevated between the US and China and such a move could raise the stakes.

    There is no high impacting US data due for release today. Investors will look ahead to US jobless claims numbers tomorrow for further clues over the progress of the economic recovery in the US.

     

     

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    GBP/USD: Pound Eyes $1.26 Ahead of Sunak’s Summer Statement https://currencylive.com/news/103570-gbp-usd-pound-eyes-1-26-ahead-of-sunaks-summer-statement/ Wed, 08 Jul 2020 07:00:39 +0000 https://currencylive.com/news/?p=101777 Brexit optimism lifts Pound (GBP) after Michel Barnier hints at compromise over UK fisheries Chancellor Rishi Sunak’s Summer Statement in focus US Dollar (USD) supported by Fed concerns over rising coronavirus numbers Pound US Dollar exchange rate (GBP/USD) extends gains for 4th straight session The Pound US Dollar exchange rate settled on Tuesday +0.4% at […]

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  • Brexit optimism lifts Pound (GBP) after Michel Barnier hints at compromise over UK fisheries
  • Chancellor Rishi Sunak’s Summer Statement in focus
  • US Dollar (USD) supported by Fed concerns over rising coronavirus numbers
  • Pound US Dollar exchange rate (GBP/USD) extends gains for 4th straight session
  • The Pound US Dollar exchange rate settled on Tuesday +0.4% at US$1.2542. At 06:15 UTC, GBP/USD trades +0.1% at US$1.2556.

    The Pound pushed higher in the previous session on the announcement that EU chief negotiator Michel Barnier was coming to London and would dine with his UK counterpart David Frost. The two discussed the sticking points in the post Brexit trade talks in an informal environment. Michel Barnier hinted that the EU could be ready to compromise on EU access on UK fishing grounds. The so-called level playground remains a point of contention. Even so, Pound investors are optimistic that momentum has been injected into the talks, boosting hopes that a deal could be reached in time.

    Attention will now turn squarely to Chancellor Rishi Sunak and his mini budget which is set to lay out the governments fiscal stimulus plans to guide the UK out of the coronavirus crisis. A stamp duty holiday is expected to be the central piece. Any update of the evolving furlough scheme will also be closely eyed.

    Despite falling versus the Pound, the US Dollar traded broadly higher versus its peers in the previous session and was holding those gains in early trade on Wednesday.

    The Dollar remains well supported as investors seek out its safe haven properties amid growing concerns over rising coronavirus cases and the return to lockdown in parts of some countries.

    Risk sentiment was also undermined by concerns expressed by the Federal Reserve that rising coronavirus numbers in the US could undermine economic growth at a crucial moment in the recovery as stimulus measures start to expire.

    There is no high impacting US data due today. Instead coronavirus statistics and sentiment will drive movement in the greenback ahead of Thursday’s jobless claims figures.

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    GBP/EUR: Pound Gains On Brexit Optimism & Ahead of Sunak’s Summer Statement https://currencylive.com/news/103569-gbp-eur-pound-gains-on-brexit-optimism-ahead-of-sunaks-summer-statement/ Wed, 08 Jul 2020 06:00:49 +0000 https://currencylive.com/news/?p=101773 Pound (GBP) surged on announcement that EU chief negotiator Michel Barnier and his UK counterpart David Frost in London Investor will now look ahead to Chancellor Rishi Sunak’s summer statement focus on tax cuts and jobs to boost economy Euro (EUR) struggled after European Commission cut growth forecasts, with -8.3% contraction now expected in 2020. […]

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  • Pound (GBP) surged on announcement that EU chief negotiator Michel Barnier and his UK counterpart David Frost in London
  • Investor will now look ahead to Chancellor Rishi Sunak’s summer statement focus on tax cuts and jobs to boost economy
  • Euro (EUR) struggled after European Commission cut growth forecasts, with -8.3% contraction now expected in 2020.
  • Pound Euro (GBP/EUR) exchange rate trades comfortably over €1.11
  • The Pound Euro exchange rate settled +0.7% at €1.1127. The Pair is pushing tentatively higher in early trade on Wednesday +0.1% at €1.1135.

    The Pound surged in the previous session following news that Michel Barnier was coming to London to meet with David Frost and inject some momentum into the post Brexit trade talks. The two met for dinner in an informal setting to discuss some of the negotiations most difficult sticking points. These include business competition regulations, which is also known as the level playing field and EU access to UK fishing waters. Rumors are swirling that Mr Barnier is prepared to compromise on fishing, making a deal more achievable.

    Today the focus will be firmly on Chancellor Rishi Sunak as he is set to unveil the government’s stimulus plans to help guide the UK economy out of the coronavirus crisis. The centre piece of his min Budget is expected to be a pledge to reduce stamp duty to boost the housing market. The Pound will be particularly focused on how the Chancellor intended to tackle the jobs crisis. The Chancellor is also under pressure to announce a fresh wave of financial support for British businesses.

    The Euro was under pressure in the previous session after disappointing German industrial production data. German industrial production came in weaker than expected, rising 7.8% in May, less than the 10% forecast. The jump came following a -17.5% decline in April.

    The European Commission also dampened the mood for the Euro cutting economic forecasts. The region is now expected to contract by -8.3% this year, followed by a 5.8% rise in 2021. Just in May the Commission estimated a -7.4% contraction with a rebound of 6.1%. `

    Today there is no high impacting Eurozone data. Looking to wards the second half of the week, the Eurogroup meeting and German trade data will be in focus.

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    GBP/INR Sees Another Increase, Might Face Resistance Near 94.00 https://currencylive.com/news/103569-gbp-inr-sees-another-increase-might-face-resistance-near-94-00/ Wed, 08 Jul 2020 05:44:13 +0000 https://currencylive.com/news/?p=101775 GBP/INR has managed to break above a sideways channel, but now it faces another strong resistance near 94.000. Currently, one British pound buys 94.130 Indian rupees, up 0.35% as of 5:05 AM UTC. The pair is bullish for the third consecutive session. It has recovered most of the losses incurred at the beginning of the […]

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    GBP/INR has managed to break above a sideways channel, but now it faces another strong resistance near 94.000. Currently, one British pound buys 94.130 Indian rupees, up 0.35% as of 5:05 AM UTC. The pair is bullish for the third consecutive session. It has recovered most of the losses incurred at the beginning of the month.

    The rupee still can’t oppose resistance as the number of coronavirus cases continues to climb in India, whose economy was already struggling before the pandemic.

    UK Finance Minister to Announce Next Moves of Recovery Plan

    On the other side, the UK is comfortably relaxing restrictive measures step-by-step. Still, it has to address the challenges of a potential second-wave of pandemic and an increase in unemployment. UK finance minister Rishi Sunak is about to announce the mini-Budget 2020 later today. He will also reveal the next steps of the COVID recovery plan.

    Sunak will announce a new 2 billion pound scheme to fix youth unemployment. The Kickstart Scheme will allow companies to hire people aged 16-24 by benefiting from government funds to pay them the minimum wage for 25 hours a week. The finance minister said:

    Young people bear the brunt of most economic crises, but they are at particular risk this time because they work in the sectors disproportionately hit by the pandemic. We also know that youth unemployment has a long-term impact on jobs and wages and we don’t want to see that happen to this generation.

    It is estimated that the plan could maintain 300,000 young people into work.

    Sunak may also announce the cut to value-added tax to help restaurants, pubs and other hospitality businesses whose revenue suffers from social distancing rules.

    Another cut for property purchases taxes may also be announced, as the finance minister is eager to boost the housing market. Yesterday, mortgage lender Halifax said that British house prices declined for a fourth consecutive month. This is the longest period since 2010.

    In India, rating agencies add salt to the injury by releasing gloomy predictions for the country’s gross domestic product (GDP) performance. Banking group DBS said that India’s economy would show a double-digit contraction in the three months to June.

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