Currency Live https://currencylive.com/news Wed, 23 Sep 2020 12:53:48 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.1 https://currencylive.com/news/wp-content/uploads/2020/03/FavIcon@2x-100.jpg Currency Live https://currencylive.com/news 32 32 USD/INR: Rupee Advances Despite Surging Covid Cases https://currencylive.com/news/104422-usd-inr-rupee-advances-despite-surging-covid-cases/ Wed, 23 Sep 2020 12:52:17 +0000 https://currencylive.com/news/?p=105174 The US Dollar Indian Rupee (USD/INR) exchange rate is trading -0.07% lower at 73.45. Easing geopolitical tensions between China and India is supporting the Rupee. Both nuclear powers have agreed to not send any more troops to the disputed border in the Himalayas. Indian covid cases continue to soar. US Dollar is well supported following […]

The post USD/INR: Rupee Advances Despite Surging Covid Cases appeared first on Currency Live.

]]>
The US Dollar Indian Rupee (USD/INR) exchange rate is trading -0.07% lower at 73.45.

Easing geopolitical tensions between China and India is supporting the Rupee. Both nuclear powers have agreed to not send any more troops to the disputed border in the Himalayas.

Indian covid cases continue to soar.

US Dollar is well supported following upbeat comments from Federal Reserve official Charles Evans, who said that the Fed could hike interest rates prior to it reaching the Fed’s average inflation target of 2%.

US PMI data is in focus. Expansion in the services sector is expected to slow slightly.

The post USD/INR: Rupee Advances Despite Surging Covid Cases appeared first on Currency Live.

]]>
USD/INR: Rupee Rises As China – India Geopolitical Tensions Ease https://currencylive.com/news/104421-usd-inr-rupee-rises-as-china-india-geopolitical-tensions-ease/ Wed, 23 Sep 2020 12:04:48 +0000 https://currencylive.com/news/?p=105170 Indian Rupee (INR) rises as China & India agree to halt troop deployment to Himalayan border Indian covid cases surge again US Dollar (USD) well supported following upbeat Fed comments US service sector & manufacturing PMI in focus The US Dollar Indian Rupee (USD/INR) exchange rate is extending losses for a second straight session. The […]

The post USD/INR: Rupee Rises As China – India Geopolitical Tensions Ease appeared first on Currency Live.

]]>
  • Indian Rupee (INR) rises as China & India agree to halt troop deployment to Himalayan border
  • Indian covid cases surge again
  • US Dollar (USD) well supported following upbeat Fed comments
  • US service sector & manufacturing PMI in focus
  • The US Dollar Indian Rupee (USD/INR) exchange rate is extending losses for a second straight session. The pair settled mildly lower -0.08% at 73.51 on Tuesday. At 11:30 UTC, USD/INR trades -0.07% at 73.45, this is at the lower end of the daily range.

    Both India and China have agreed not to send more troops to the disputed boarder region in the Himalayas, in an attempt to avoid situations or actions that could complicate an already very tense situation. The update comes after weeks of rising tensions over the ill-defined border. The easing of geopolitical tensions between the two nuclear powers is being seen as a positive development.

    Coronavirus concerns are capping any gains in the Rupee as India’s covid-19 cases surge after a recent dip. On Tuesday new daily infections eased back to the lowest level in almost a month. However, today a further 83,347 cases were reported, with deaths reaching 1,085.

    The spread of covid in India continues almost unabated, consistently reporting the world’s highest number of daily infections. With an overstretched health system, efforts to control the pandemic are failing. The longer that the virus continues at such elevated levels the harder the economic hit and the deeper the economic scars.

    The US Dollar is trading steadily versus its major peers after gaining strongly in the previous session. Upbeat comments from Federal Reserve officials in the previous session helped lift the US Dollar to a 2 month high versus a basket of 6 major peers (US Dollar Index).

    Fed official Charles Evans was very bullish saying that the US economy had returned to 90% of pre-pandemic levels. He added that the Fed could raise interest rates prior to the 2% average inflation target being reached.

    US PMI data will now move into focus. Analysts are expecting service sector activity to ease back slightly in September, but manufacturing pick up its expansion.

    The post USD/INR: Rupee Rises As China – India Geopolitical Tensions Ease appeared first on Currency Live.

    ]]>
    AUD/USD Bears in Control As RBA Says Recovery Will Take Time https://currencylive.com/news/104421-aud-usd-bears-in-control-as-rba-says-recovery-will-take-time/ Wed, 23 Sep 2020 10:59:54 +0000 https://currencylive.com/news/?p=105168 Reserve Bank of Australia sounded less optimistic about economic recovery while providing details regarding monetary policy options ahead. The RBA policy member said that in a most probable scenario, it would take more than three years for sufficient progress towards full employment and target inflation. The AUD/USD exchange rate continued to decline and it looks […]

    The post AUD/USD Bears in Control As RBA Says Recovery Will Take Time appeared first on Currency Live.

    ]]>
    Reserve Bank of Australia sounded less optimistic about economic recovery while providing details regarding monetary policy options ahead. The RBA policy member said that in a most probable scenario, it would take more than three years for sufficient progress towards full employment and target inflation.

    The AUD/USD exchange rate continued to decline and it looks ready to challenge the August low of 0.7076.

    The US dollar strength also dragged the pair along with the central bank observations.

    Deputy Governor Guy Debelle has recently listed RBA options: expanding the yield target program, intervention in foreign exchange markets, lowering interest rate without entering the negative zone, and negative interest-rate policy.

    The bank will follow the best course of action after weighing the unfolding scenario, according to Debelle; the official cash rate is at 0.25 Percent – a record low. RBA sees the recovery to have a protracted nature and has shown an inclination for further monetary support to assist businesses and households.

    RBA’s next meeting on October 6 is on the same day as Treasurer Josh Frydenberg’s federal budget update. Traders will check whether the central bank deploys more non-standard measures then and the crowding behaviour in AUD/USD might continue with the retail traders being net-short the pair since April.

    The post AUD/USD Bears in Control As RBA Says Recovery Will Take Time appeared first on Currency Live.

    ]]>
    USD/PKR: Rupee Falls vs Fed Boosted USD https://currencylive.com/news/104420-usd-pkr-rupee-falls-vs-fed-boosted-usd/ Wed, 23 Sep 2020 10:13:45 +0000 https://currencylive.com/news/?p=105164 Pakistan Rupee (PKR) declines despite the current balance tipping into surplus for a 2nd month Rising remittances & lower import payments lifted the current account balance US Dollar (USD) on the rise following upbeat Fed US PMI data up next The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending gains for a second day […]

    The post USD/PKR: Rupee Falls vs Fed Boosted USD appeared first on Currency Live.

    ]]>
  • Pakistan Rupee (PKR) declines despite the current balance tipping into surplus for a 2nd month
  • Rising remittances & lower import payments lifted the current account balance
  • US Dollar (USD) on the rise following upbeat Fed
  • US PMI data up next
  • The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending gains for a second day on Wednesday. The pair settled on Tuesday +0.5% at 166.05. At 07:15 UTC, USD/PKR trades +0.15% at 166.30. Mid way through the week, the pair is on track for weekly gains of 0.6%.

    The Pakistan current account balance has turned into a surplus for the second straight month in August. The State Bank of Pakistan revealed that the Current account balance was $508 million and $297 million in July and August.

    On a cumulative basis the current account balance reached a surplus of $805 million in Jul- August fiscal year 2021 compared to a $1.2 billion deficit recorded in the same period a year earlier.

    The State Bank of Pakistan said that the strong surplus was owing to the solid rise in workers remittances and lower import payments.

    The US Dollar is edging higher across the board again on Wednesday, trading at 2 month highs versus a basket of its major peers. The greenback is in demand following upbeat comments from Federal Reserve policy makers overnight.

    Federal Reserve Chair Jerome Powell said that the US economy stood resilient throughout the covid pandemic, whilst Federal Reserve official Charles Evans said that the US economy had returned to 90% of pre-pandemic levels, adding that the Fed could consider raising interest rates before the 2% average inflation target is reached.

    The US Dollar will now loo ahead to the release of PMI data later today. Analysts are expecting the readings to show that the US economic recovery continues at a steady pace. Expectations are for the service sector activity to tick marginally lower to 54.7 in September from 55. Meanwhile the manufacturing sector is expected to advance to 53.2, up from 53.1.

    The post USD/PKR: Rupee Falls vs Fed Boosted USD appeared first on Currency Live.

    ]]>
    GBP/AUD: Aussie Plunges As Retail Sales Dive https://currencylive.com/news/104419-gbp-aud-aussie-plunges-as-retail-sales-dive/ Wed, 23 Sep 2020 08:59:53 +0000 https://currencylive.com/news/?p=105162 Australian Dollar (AUD) trades lower after retail sales -4.2% MoM Victoria state saw largest sales decline owing to lockdown Pound (GBP) trades higher after resilient PMI data which showed solid, but slowing growth Slowdown could pick up pace after PM tightened restrictions as covid cases rise The Pound Australian Dollar (GBP/AUD) exchange rate is extending […]

    The post GBP/AUD: Aussie Plunges As Retail Sales Dive appeared first on Currency Live.

    ]]>
  • Australian Dollar (AUD) trades lower after retail sales -4.2% MoM
  • Victoria state saw largest sales decline owing to lockdown
  • Pound (GBP) trades higher after resilient PMI data which showed solid, but slowing growth
  • Slowdown could pick up pace after PM tightened restrictions as covid cases rise
  • The Pound Australian Dollar (GBP/AUD) exchange rate is extending gains for a third day on Wednesday. The pair settled on Tuesday just mildly higher at +0.07% at 1.7749. At 08:15 UTC, GBP/USD trades +0.4% at 1.7820 after hitting a weekly high of 1.7871 overnight.

    Demand for the Australian Dollar is slipping across the board following surprisingly weak data. Australian retail sales plunged -4.2% in August compared to the month earlier, with the state of Vitoria seeing the worst decline, amid a second wave of coronavirus.

    According to the data from the Australian Bureau of Statistics, Victoria saw large declines in sales across industries except for food as a strict lockdown saw many businesses shut their doors. NOt including Victoria, retail sales across the rest of the country fell a more palatable -1.5%.

    Australian PMI data for both the service sector and the manufacturing sector was much more upbeat than expected. With the service sector almost in expansionary territory at 50 on the PMI gauge. Meanwhile activity in the manufacturing sector expanded at a much faster rate than expected at 55.5. Analysts had been predicting that the sector would fall back into contraction.

    The Pound was showing resilience after a mixed bag of PMI data. Whilst the manufacturing sector expanded at a faster pace in September, the service sector, the dominant sector in the UK, saw growth ease back slightly from August’s levels.

    The composite PMI which tracks activity, slowed to a 3-month low of 55.7 in September, down from a 6 year high of 59.1 in August.

    The data shows that the UK economic recovery is losing steam, with both services companies and manufacturing companies reporting slowing new orders. This could in fact worsen over the coming weeks and months after Boris Johnson tightened restrictions in order to stem the spread of coronavirus.

     

    The post GBP/AUD: Aussie Plunges As Retail Sales Dive appeared first on Currency Live.

    ]]>
    GBP/USD Weak despite Bailey Comments and Brexit Deal Hopes https://currencylive.com/news/104418-gbp-usd-weak-despite-bailey-comments-and-brexit-deal-hopes/ Wed, 23 Sep 2020 08:33:03 +0000 https://currencylive.com/news/?p=105160 GBP/USD below the 200-day moving average. Pandemic concerns weigh on the sterling. US dollar strength drags the pair. GBP/USD witnessed a tug-of-war between the bulls and the bears on Tuesday. The pair first caught selling to 1.2700 levels and then climbed up around 150 pips on the back of BoE Governor Andrew Bailey downplaying negative […]

    The post GBP/USD Weak despite Bailey Comments and Brexit Deal Hopes appeared first on Currency Live.

    ]]>
  • GBP/USD below the 200-day moving average.
  • Pandemic concerns weigh on the sterling.
  • US dollar strength drags the pair.
  • GBP/USD witnessed a tug-of-war between the bulls and the bears on Tuesday. The pair first caught selling to 1.2700 levels and then climbed up around 150 pips on the back of BoE Governor Andrew Bailey downplaying negative interest-rate expectations. He made the comments during an online discussion hosted by the British Chambers of Commerce while saying that the debate regarding rate below zero doesn’t imply a possibility of using it. The official further added that the use of negative interest across the world worked with mixed results and its effectiveness depends on the timing and a country’s banking structure.

    The positive headlines also helped the sterling that the Brexit talks are progressing better than expected, and a deal can’t be ruled out at this stage. The EU Chief Brexit Negotiator Michel Barnier will be visiting London for informal talks, a piece of news confirmed by the UK PM spokesman. The spokesman added that the UK is working hard for a deal. But, the optimism was doused by Ireland’s foreign minister, Simon Coveney comments that there is a growing feeling that Britain might not want a settlement and UK government tactics are proving detrimental to the progress of the negotiations.

    UK PM announced many pandemic related restrictions after a fresh spike in the cases recently and indicated further moves if situations don’t improve. The GBP/USD weakened on the news and the renewed strength in the dollar. The pair closed near the low end of the trading range and opened weak today during the Asian trading.

    Chicago Fed President Charles Evans’ hawkish tone regarding the quantitative easing and possible interest rate hikes added to the dollar strength. The greenback has built momentum recently as the second wave of coronavirus emerged world over. The GBP/USD fell below 200-day SMA, in the process hitting a two-month low during the Asian session today.

    As the UK economic docket is scarce, the Brexit-related headlines will drive action in the pair before the flash version of the US PMI prints for September during the US session. The Fed Chair’s congressional testimony continues for the second day today and will be tracked by the USD traders for clues regarding monetary policy and economic strength.

    The post GBP/USD Weak despite Bailey Comments and Brexit Deal Hopes appeared first on Currency Live.

    ]]>
    EUR/USD: Euro Slumps As Service Sectors Contract https://currencylive.com/news/104417-eur-usd-euro-slumps-as-service-sectors-contract/ Wed, 23 Sep 2020 08:00:41 +0000 https://currencylive.com/news/?p=105156 Euro (EUR) trends lower on rising covid fears PMI data in focus as service sectors contract US Dollar (USD) continues to advance on upbeat Fed speak US PMIs to show steady recovery The Euro US Dollar (EUR/USD) exchange rate is extending losses for a fourth day on Wednesday. The pair settled on Tuesday -0.5% at […]

    The post EUR/USD: Euro Slumps As Service Sectors Contract appeared first on Currency Live.

    ]]>
  • Euro (EUR) trends lower on rising covid fears
  • PMI data in focus as service sectors contract
  • US Dollar (USD) continues to advance on upbeat Fed speak
  • US PMIs to show steady recovery
  • The Euro US Dollar (EUR/USD) exchange rate is extending losses for a fourth day on Wednesday. The pair settled on Tuesday -0.5% at US$1.21706. The pair is trading – 1.3% so far this week. At 07:15 UTC, EUR/USD trades -0.2% at US$1.1686.

    The Euro is trending lower as concerns grow over the rising number of coronavirus cases on the old continent. Fears are growing that more lockdown restrictions will be applied to stem the spread of covid. More restrictions could quickly derail the fragile economic recovery.

    The focus is now firmly on PMI data for both the service sector and the manufacturing sector which will provide clues over the health of the economic recovery in the region.

    The French PMI data was decidedly mixed. Whilst the manufacturing sector expanded in this month, the service sector unexpectedly fell back into contraction. The Service sector PMI for France dipped to 47.5 in September, down from 51.5 in August, a sign that the rising number of infections was already impacting the fragile recovery.

    Attention will now turn to the Eurozone which is expected to show both services and the manufacturing sector continuing to expand.

    The US Dollar is trading at a 2 month high versus its major peers, following surprisingly optimistic comments from Fed policy makers overnight. Federal Reserve Chair Jerome Powell said that the US economy stood resilient throughout the coronavirus pandemic. Meanwhile Fed official Charles Evans said that the US economy had returned to 90% of pre-pandemic levels, adding that the Fed could raise interest rates before the 2% average inflation target is reached.

    Investors will now look to US PMI data for both the manufacturing sector and the service sector. Analysts forecast that the two sectors continued to expand at a similar rate in September to that of August. A strong reading could help lift the US Dollar.

     

    The post EUR/USD: Euro Slumps As Service Sectors Contract appeared first on Currency Live.

    ]]>
    GBP/INR Slips for 4th Consecutive Session as PM Introduces New Restrictions https://currencylive.com/news/104416-gbp-inr-slips-for-4th-consecutive-session-as-pm-introduces-new-restrictions/ Wed, 23 Sep 2020 07:36:59 +0000 https://currencylive.com/news/?p=105154 GBP/INR continues to decline on Wednesday, updating the lowest level since the beginning of July. At the time of writing, one British pound buys 93.385 Indian rupees, down 0.21% as of 6:50 AM UTC. This is the fourth consecutive bearish session, during which the pair has declined by over 2.1%. The pound is under increased […]

    The post GBP/INR Slips for 4th Consecutive Session as PM Introduces New Restrictions appeared first on Currency Live.

    ]]>
    GBP/INR continues to decline on Wednesday, updating the lowest level since the beginning of July. At the time of writing, one British pound buys 93.385 Indian rupees, down 0.21% as of 6:50 AM UTC. This is the fourth consecutive bearish session, during which the pair has declined by over 2.1%.

    The pound is under increased pressure as UK Prime Minister Boris Johnson has imposed new restriction measures to curb the rapid spread of coronavirus infections. While the PM didn’t want to interfere with the economic recovery, some of the new restrictions might slow down the pace of the GDP growth. Yesterday, the UK reported over 4,900 new cases, up from Monday’s 4,368 cases.

    The new rules limit gatherings to a maximum of six people. They also require pubs and restaurants to close at 10 PM. The restrictions would last for at least six months, according to Johnson.

    Meanwhile, the sterling is bearish amid persistent pessimism over a potential no-deal Brexit. Johnson sticks to his internal markets bill, which overrides parts of the current agreement with the European Union. The new bill won’t be debated in the UK parliament until after EU leaders gather for a summit in mid-October.

    The pound’s decline might have been capped by comments from Bank of England Governor Andrew Bailey, who hinted there were few chances that the central bank would cut the interest rate below zero. He said:

    Yes [negative rates] it’s in the tool bag, but that does not imply anything about the probability of us using negative interest rates at the moment.”

    UK Manufacturing Loses Ground

    Still, recent economic data doesn’t help the pound. The Confederation of British Industry (CBI) said that manufacturers had experienced in September the largest decline in orders in three months, citing the impact of the pandemic and Brexit worries. CBI’s industrial order book balance declined to -48 from -44 in August. Economists polled by Reuters expected a small increase.

    Manufacturers are worried about the new restrictions, as the PM called employees to work from home. Also, the job support scheme is ending next month.

    CBI economist Anna Leach said:

    As manufacturing firms continue to battle against headwinds from a resurgence of the virus, weak global demand and uncertainty over our trading relationships, the government must step up its support.

    The post GBP/INR Slips for 4th Consecutive Session as PM Introduces New Restrictions appeared first on Currency Live.

    ]]>
    GBP/USD: Pound Extends Losses For 4th Session, PMIs in Focus https://currencylive.com/news/104415-gbp-usd-pound-extends-losses-for-4th-session-pmis-in-focus/ Wed, 23 Sep 2020 07:00:54 +0000 https://currencylive.com/news/?p=105147 Pound (GBP) moves lower after Boris Johnson tightens restrictions PMI data to show manufacturing and sector activity expanding at a slightly slower pace US Dollar (USD) advances after upbeat comments from Fed Evans US PMI data to show steady recovery continuing into September from August The Pound US Dollar (GBP/USD) exchange rate is extending losses […]

    The post GBP/USD: Pound Extends Losses For 4th Session, PMIs in Focus appeared first on Currency Live.

    ]]>
  • Pound (GBP) moves lower after Boris Johnson tightens restrictions
  • PMI data to show manufacturing and sector activity expanding at a slightly slower pace
  • US Dollar (USD) advances after upbeat comments from Fed Evans
  • US PMI data to show steady recovery continuing into September from August
  • The Pound US Dollar (GBP/USD) exchange rate is extending losses for a fourth day on Wednesday. The pair settled on Tuesday -0.65% at US$1.2731. The pair is has already lost 1.5% so far this week. At 06:15 UTC, GBP/USD trades -0.05% at US$1.2725.

    The Pound is under pressure after Prime Minister Boris Johnson tightened restrictions in England in order to prevent the further spread of coronavirus. A curfew will be applied to pubs, bars, restaurants and hospitality venues, with venues to be closed by 10pm. These restrictive measures could be in place until next Spring. Staff must also return to working from home wherever possible.

    The Prime Ministers announcement came as the number of coronavirus cases rose by 4926 over the past 24 hours and 37 new fatalities were recorded.

    Attention will now turn to September’s preliminary PMI readings for both the service and manufacturing sectors. Analysts expect both sectors to show a slight slowing in expansion this month. The manufacturing PMI is forecast to dip to 54.3 in September, down from 55.2 in August. Meanwhile, the service sector is expected to tick lower to 56, down from 58.8.  The level 50 separates expansion from contraction.

    The US Dollar went from strength to strength in the previous session. Whilst the US currency rose on safe haven inflows, it also received a boost from Federal Reserve Evans. The markets were surprised when he said that the economy had returned to 90% of pre-pandemic levels and that the Fed could raise interest rates before the 2% average inflation target is reached.

    Attention will now turn to US PMI data for both manufacturing sector and the service sector. Analysts are expecting the two sectors to continue expanding at a similar rate in September to that of August. A strong reading could help lift the US Dollar.

     

    The post GBP/USD: Pound Extends Losses For 4th Session, PMIs in Focus appeared first on Currency Live.

    ]]>
    GBP/EUR: Pound Advances, PMIs Up Next https://currencylive.com/news/104414-gbp-eur-pound-advances-pmis-up-next/ Wed, 23 Sep 2020 06:30:43 +0000 https://currencylive.com/news/?p=105144 The Pound Euro exchange rate (GBP/EUR) is trading +0.2% as it looks to target €1.09, after 4 sessions in the red. The Pound is pushing higher, recovering losses from Prime Minister Boris Johnson applying tighter restrictions on England in order to bring rising covid cases under control. UK PMI data from both the service sector […]

    The post GBP/EUR: Pound Advances, PMIs Up Next appeared first on Currency Live.

    ]]>
    The Pound Euro exchange rate (GBP/EUR) is trading +0.2% as it looks to target €1.09, after 4 sessions in the red.

    The Pound is pushing higher, recovering losses from Prime Minister Boris Johnson applying tighter restrictions on England in order to bring rising covid cases under control.

    UK PMI data from both the service sector and the manufacturing sector is in focus. Both sectors are expected to show expansion in September but at a slower rate.

    Euro is under pressure amid rising covid cases. German manufacturing PMI and the Eurozone as a whole are expected to increase, indicating the bloc’s economy is on the road to recovery

    The post GBP/EUR: Pound Advances, PMIs Up Next appeared first on Currency Live.

    ]]>