The Reserve Bank of India on Tuesday set 7.76 rupees premium for its first dollar/rupee three-year buy-sell swap auction and accepted the entire planned $5 billion on sale. In the inter-bank cross-currency swap, 3-year dollar/rupee swaps were quoted at 7.7 rupees per dollar on Tuesday, implying an annualised cost of 3.7 percent to swap rupees for dollars. The cut-off premium of 7.76 rupees translates into an annualised 3.75 percent, which is higher than the market rate, dealers said.
The euro held around $1.13 and analysts said a stronger-than-forecast German business confidence survey on Monday was buoying the single currency. The euro has remained in a fairly narrow range of $1.12-$1.16 in 2019 despite a marked slowdown in the euro zone economy that has prompted fresh stimulus from the European Central Bank. The dollar rebounded modestly after global markets recoiled on Monday in the wake of an inversion in the U.S. Treasury yield curve, which has signaled a recession in the past.
Based on last week’s close at $1318.70, the direction of the June Comex gold market this week is likely to be determined by trader reaction to the uptrending Gann angle at $1317.30 and the main Fibonacci level at $1325.90.
A better start to the day is on the cards if the futures are anything to go by. Sentiment could rapidly shift, however, should bond yields hit reverse.
Based on last week’s close at .7081, the direction of the AUD/USD this week is likely to be determined by trader reaction to the 50% level at .7079 and the downtrending Gann angle at .7074.
Investing.com -- Sterling is center stage again Tuesday morning in Europe after U.K. lawmakers voted on Monday night to take control of the Brexit process from the government of Prime Minister Theresa May.
Based on Monday’s price action and the early action on Tuesday, it looks as if USD/JPY investors have absorbed the plunge in U.S. Treasury yields. It further indicates the next major move in the Forex pair will likely be determined by appetite for risk. Another steep sell-off is likely to pressure the Dollar/Yen and firmer equity prices will be supportive.
Increased demand for riskier assets is helping to underpin the Aussie and Kiwi, but higher Treasury yields may be putting a lid on prices. Earlier in the session, New Zealand posted a merchandise trade deficit of NZ$914 million in January, Statistics New Zealand said on Wednesday – marking the largest deficit on record for a January month.
Another big day ahead on the Brexit front could deliver an unexpected turn and a boost for the Pound. Will Theresa May call it a day to deliver The Deal?
Investing.com - The British Pound was little changed on Tuesday in Asia after Parliament took control of the Brexit process from Prime Minister Theresa May.
Bitcoin prices tumbles lower on Monday, losing as much as 2.5% and surrendering some recent gains that saw the best-known cryptocurrency log its fifth consecutive winning week.
Many currencies, including the majors, are retracing last week’s movements on Monday, leading to little action in the U.S. dollar and euro, as well as a rebound from losses in emerging markets.
Dovish crude oil prices undermines Loonie but subdued momentum in US Greenback resulted in range bound price action.
Gold markets continue to rally during the trading session on Monday, as we reach towards the bottom of the major uptrend line. Now that we are in this area, we have a lot of questions to ask.
The US dollar has gone back and forth during the trading session on Monday, testing the ¥110 level. This is an area that will of course attract a lot of attention due to the round figure and previous resistance.
The British pound fell a bit during the trading session on Monday but found enough support underneath the turn around and rally again. There are a lot of rumors going on around as to whether or not Theresa May will remain, which quite frankly might be good for the British pound at this point.
The Brexit saga continues overseas as British Prime Minister Theresa May survives a coup attempt. Hundreds of thousands across London protested Brexit this past weekend. Yahoo Finance's Adam Shapiro, Julie Hyman, and Oscar Williams-Grut discuss.