CN: Indian Rupee Gains on Pound (GBP/INR), USD/INR Exchange Rate Steady after US Employment Data
GBP to INR Down -0.3% as Pound Sterling (GBP) Exchange Rate Broadly Declines after UK Manufacturing Data
The Pound Sterling to US Dollar (GBP/USD), Pound Sterling to Indian Rupee (GBP/INR) and Pound Sterling to Australian Dollar (GBP/AUD) exchange rates fluctuated after the UK’s Manufacturing PMI fell instead of climbing further above the 50 mark separating growth from contraction – as economists expected to be the case. The GBP/EUR currency pair remained in a stronger position after Greece defaulted on its repayment to the International Monetary Fund (IMF).
While the UK’s disappointing manufacturing PMI weighed on demand for the Pound, India also issued a less-than-impressive report, with its own HSBC Manufacturing index dropping from 52.6 to 51.3 last month. Sterling held its 0.3% decline against the Rupee after the report was published.
However, one Markit economist was able to pick out some positives from the report, stating; ‘broad-based increases in both production and order book volumes were maintained, with consumer, intermediate and investment goods producers all recording growth. “On the price front, there was welcome news from an easing in inflation rates. Costs and charges both rose at rates that were historically muted. With price pressures being weak and growth losing steam, June’s dataset suggests that the RBI’s loosening cycle is, therefore, likely to continue.’
US Employment Gain Supports US Dollar Exchange Rate Trading, USD/GBP, USD/INR
The US Dollar to Indian Rupee (USD/INR) exchange rate reversed previous declines to trend in a narrow range on Wednesday as investors responded to the US ADP Employment Change report. The US economy was shown to have added 237,000 positions in June following a positively revised jobs gain of 203,000 in May. If Friday’s US Non-Farm Payrolls report also impresses, Federal Reserve interest rate hike expectations will rise and the USD/INR exchange rate could Rally.
Indian Rupee Foreign Exchange Forecast: Services PMIs to Dictate GBP/INR Movement
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate could be on course to experience further volatility as the week progresses. Tomorrow the UK is set to publish its Construction PMI for June. While this is the least significant of the UK measures, investors will still be hoping for a positive print after the manufacturing disappointment. The construction index is expected to come in at 56.5 – up from 55.9 the previous month. The week closes with Services PMIs for the UK and India. The Indian index has been projected to rise to 49.69, keeping it below the 50 mark separating growth from contraction. If the UK’s own report shows the improvement expected, the GBP/INR currency pair could end the week on a high.
