Indian Rupee to US Dollar (INR/USD) Exchange Rate on Hold before ECB Decision
The Indian Rupee to US Dollar (INR/USD) exchange rate was trading in a narrow range ahead of the day’s big economic events – the European Central Bank’s (ECB) interest rate decision and the publication of US initial jobless claims figures.
While the US Dollar derived support from the Federal Reserve’s Beige Book (which outlined broad-based employment gains in the US), the safe-haven currency had previously stumbled against peers like the Rupee as domestic employment and services data disappointed expectations.
The ADP Employment Change report showed that the US economy added fewer-than-forecast positions in November while the Markit Services PMI slumped to a five-month low.
The services report saw Markit economist Chris Williamson note; ‘Whereas the manufacturing slowdown was largely linked to weaker global demand and a renewed fall in export orders, moderating growth in the service sector is a sign of domestic demand weakening.’
If the ECB indicates that it is preparing to roll out full-scale quantitative easing measures in order to support the Eurozone, the currency market could experience extensive volatility and higher-risk currencies like the Indian Rupee could come under pressure.
The Indian Rupee to US Dollar (INR/USD) exchange rate may also soften if today’s US initial jobless and continuing claims reports show improvement.
The US Dollar to Indian Rupee (USD/INR) exchange rate is trading in the region of 61.8950
South African Rand to US Dollar (ZAR/USD) Exchange Rate Steady before Jobless Claims Stats.
On Wednesday the South African Rand tracked the Euro lower and declined against several of its most traded currency rivals.
As the Eurozone is South Africa’s largest trading partner, the disappointing Services/Composite PMI and retail sales figures which emerged from the currency bloc yesterday had a detrimental impact on the Rand.
The South African Rand to US Dollar (ZAR/USD) exchange rate stumbled, with the Rand falling to a low of 11.2360 against its US counterpart.
According to one industry expert, the weakness in the Rand is Dollar driven, and the USD/ZAR pairing ‘tripped stops after breaking 2-week highs around 11.15 and has extended the upside towards 11.2500- 11.3550 early November peaks.’
Similarly, analyst Christopher Shiells said this of the Rand’s movement; ‘Policy divergence trades are the main thing at the moment. The South African Reserve Bank is seen more dovish of late (while) the Fed is to start policy normalisation’.
While the Rand did recover some losses against the US Dollar after US employment and services data disappointed, the currency could soften later today if the European Central Bank outlines the introduction of quantitative easing measures.
Today’s US initial jobless and continuing claims data could also impact the South African Rand to US Dollar exchange rate.
The US Dollar to South African Rand (USD/ZAR) exchange rate achieved a high of 11.1883
Swiss Franc to Pound Sterling (CHF/GBP) Exchange Rate Trends in Narrow Range.
The Swiss Franc to Pound Sterling (CHF/GBP) exchange rate was trading between highs of 1.5354 and lows of 1.5304 on Thursday as investors focused on the upcoming interest rate announcements from the Bank of England (BoE) and European Central Bank (ECB).
On Wednesday a stronger-than-anticipated growth report for Switzerland gave the Franc a boost against several of its rivals.
However, the CHF/GBP pairing’s advance was limited as the Pound posted widespread gains in response to a strong UK services report and revised growth forecasts in the Autumn Statement.
As reports for Switzerland are in short supply for the rest of the week, movement in the CHF/GBP exchange rate will be occasioned by UK and global developments.
The BoE interest rate announcement is unlikely to trigger any major volatility, but the ECB decision could have far-reaching consequences in the currency market.
The Swiss Franc to Pound Sterling (CHF/GBP) exchange rate was trending in the region of 1.5329
Swedish Krona to Pound Sterling (SEK/GBP) Exchange Rate Weaker on Political Uncertainty.
The Swedish Krona to Pound Sterling (SEK/GBP) exchange rate shed around 0.3% on Thursday as investors grew weary of the Krona in the face of political upheaval.
Sweden is preparing to hold its first snap-election in 50 years as a result of a series of issues, including the defeat of the government’s budget bill for next year.
The Krona weakened across the board after the decision to hold an election in March was announced.
While the SEK/EUR exchange rate was able to stage a rebound thanks to weak Eurozone data and the expectation of provocative statements from the European Central Bank (ECB), the Krona’s performance against the Pound was slightly less impressive.
According to one currency strategist; ‘There’s no [currency] drama and the simple reason is that this is mainly a political crisis and not an economic crisis. Often a political crisis emerges from an economic crisis but that’s not how things are in this case.’
The Swedish Krona to Pound Sterling (SEK/GBP) exchange rate is currently trading in the region of 0.0846
