INR forecast: INR opens flat 6856 as against last week close of 68.60 and may trade the day between 68.36-68.61 under two way possible ice action.
Last Friday U.S NFP data came below market expectation with fewer jobs being added in July’18. But May and June numbers were revised upwards. Not much reaction from markets.
Going ahead, this week is light on economical calender from U.S, Europe and India, but latest trade figures from China will be closely watched to get fresh sense on post effect on U.S import tariff. China is planning to impose USD 60 Bn. tariff on U.S goods escalating trade war fear.
Also rising uncertainty between U.S-Istanbul lead Turkish Liya to slip multi-year low at 5.09. CNY has recovered it’s last week loss and currently trade around 6.83 levels.
CNY could see some stability for sometime. Late on Friday, PBOC tweaked norms for forward trading to stabilise weakening CNY. at one hand, China wants to weaken CNY and on other side intervention to stabilise it. Difficult to decipher their intent!
Some thaw appears to be emerging as US said that there wer very high level talks between US and China.
Today Asian equities and currencies are mildly stronger.