INR most undervalued by -67.9%, CHF most overvalued by +43.7%
QUOTE: I don’t want yes-men around me. I want everyone to tell the truth, even if it costs them their jobs.
ECONOMY SPECIAL
IMF PPP data: CHF is also most overvalued currency in the world, at +43.7% relative to USD
INR, at -67.9% relative to USD is most undervalued
2015 India GDP growth forecast at 7.35% vs 6.9% for China
2016, the growth forecast at 7.6% for India vs 6.7% for China
Next fastest growing economies are Philippines (6.2%), Indonesia (5%) and Malaysia (4.8%),
Russia and Brazil are only 2 major economies in world on target for recession in 2015
Consensus GDP forecast for Russia is -3.5% and for Brazil, -1.3%
Switzerland is slowest growing major economy with 2015 GDP forecast of 0.8%
MARKET PULSE
US added 223,000 jobs in June; jobless rate fell to a 7-year low of 5.3 %
Data showed the U.S. labor-force participation fell to a 1977 low
US hourly earnings at private cos.held at $24.95,up just 2 % in 12 mo. to June
Greece poll: 43 % to vote “no” to reject the austerity d; 42.5 % a “yes” to accept bailout
Greece needs $40b in new euro-area financing, IMF says
Greek banks’ liquidity reserves may only last until Monday
Varoufakis says he’ll quit If Greeks back austerity in vote
AUD at two month low after retail sales grew less than expected
AUD fell as on the fall in the price of iron ore, declined the most in two months
BP featured in gains after taking a $18.7b charge to settle claims in Gulf oil spill
Sweden’s central bank cuts repo rate to -0.35% from -0.25% to curb krona gains
INDIAN INR
MARKETS
INR gains 0.1% to 63.4275 per USD; up 0.3% this week.
1-month implied volatility drops 5 bps to 5.7600%; average of past 12 months is 6.7734%
INR 1-month forwards rise 0.2% to 63.71 per USD
INR Pivot at 63.555
Support at 63.4475 broken, next at 63.3825, 63.2100; resistance at 63.6200, 63.7225, 63.9000
FACTORS
Nikkei-Markit Services and Composite PMI for June scheduled to be released today
Prospect of weaker monsoon rains and the loss of risk appetite for Asian assets could partially offset upbeat sentiment for nation’s strong growth prospects- NAB
2015 India GDP growth forecast at 7.35% vs 6.9% for China
2016, thegrowth forecast at 7.6% for India vs 6.7% for China
Next fastest growing economies are Philippines (6.2%), Indonesia (5%) and Malaysia (4.8%),
Russia and Brazil are only 2 major economies in world on target for recession in 2015;
Consensus GDP forecast for Russia is -3.5% and for Brazil, -1.3%
Switzerland is slowest growing major economy with 2015 GDP forecast of 0.8%
I MF PPP data: CHF is the most overvalued currency in the world, at +43.7% relative to USD
INR, at -67.9% relative to USD is most undervalued
FOREIGN EXCHANGE
MARKETS
USD Spot Index was at 1,186.69 from 1,186.29
Dollar Index is up 0.6 % this week, slowing from a 1.1 % gain last week
USD fetched $1.1094 per euro from $1.1084
USD little changed at 123.11 yen.
AUD Fell 0.9 % to 75.67 U.S (Apr 14th low
AUD slightly above a six-year low of 75.33 cents set on April 2
FACTORS
US added 223,000 jobs in June; jobless rate fell to a 7-year low of 5.3 %
Data showed the U.S. labor-force participation fell to a 1977 low
U.S. cos. added 223,000 jobs in June while wages stagnated and the size of the labor force receded
US has two more jobs reports before the September FOMC meeting
US hourly earnings at private cos.held at $24.95, rising just 2 % in 12 months to June
AUD at two month low after retail sales grew less than expected
AUD fell as on the fall in the price of iron ore, declined the most in two months.
BP featured in gains after taking a $18.7b charge to settle claims in Gulf oil spill
Greece poll: 43 % to vote “no” to reject the austerity d; 42.5 % a “yes” to accept bailout
Greece needs $40b in new euro-area financing, IMF says
Greek banks’ liquidity reserves may only last until Monday
Varoufakis says he’ll quit If Greeks back austerity in vote
Sweden’s central bank cuts repo rate to -0.35% from -0.25% to curb krona gains
GOLD
Gold Spot at $1,167.81 from $1,166.26 on Thursday, when it fell to $1,157.18 (Mar 18 Low)
Gold prices are set for a 0.7 % drop this week, extending last week’s 2.1 % decline
Gold Futures for August rose 0.3 % to $1,166.40 after 3 days of losses.
Gold fell 0.5 % to 231.50 yuan/ gram ($1,160.18) Shanghai Gold Exchange, trading at 232.78 yuan
Silver Spot fell 0.2 % to $15.6643 after rising 0.7 % on Thur, ending 5 days of declines
FACTORS
U.S. cos. added 223,000 jobs in June while wages stagnated and the size of the labor force receded
US has two more jobs reports before the September FOMC meeting
The post FX News: INR most undervalued by -67.9%, CHF most overvalued by +43.7% appeared first on Live Trading News.