GBPINR Futures Break Below 105; UK Inflation Data Due

Published on Jan 17, 2024 11:30

The GBPINR futures on the NSE broke below 105 mark and is extending downside on Wednesday tracking decline in its global counterpart as a sharp rebound in dollar overseas is weighing down peer currencies. UK pound is loitering around a one-month low against the dollar as greenback added substantial gains during the last couple of sessions amid safe haven demand and reduced expectations of a Federal rate cut anytime soon. US benchmark treasury yields surging above 4% also dragged dollar higher. Fed�s Christopher Waller stated in a speech yesterday that the timing and number of rate cuts will be driven by the incoming data. When the time is right to begin lowering rates, I believe it can and should be lowered methodically and carefully, he added. The dollar index that measures the greenback against a basket of currencies is currently quoting at 103.25, up 0.13% on the day. GBPUSD is trading at $1.2614, down 0.18% on the day. With the pair having broken below 1.2618 that was acting as a good support during last three weeks, further decline is likely with $1.2600 expected to act as the next support. However, the pair is awaiting UK CPI and PPI data slated for release later today for further cues. Meanwhile, GBPINR futures on NSE is seen quoting at 104.85, down 0.16% on the day and is likely to incur further losses going ahead.