Asian markets are trading with a negative bias today, as Greek political leaders failed to reach an agreement on a tough reform and austerity programme to secure a new international bailout for the nation in order to avoid a potential debt default.
Additionally, China’s Consumer Price Index (CPI) rose faster than expected by 4.5 percent (y-o-y) in January as against 4.1 percent in the prior month. This led rise in risk aversion in the global markets today.
The country’s Producer Price Index (PPI) increased at a slow pace of 0.7 percent in January from previous rise of 1.7 percent in December.
German Trade Balance stood at a surplus of 13.9 billion Euros in December from the previous surplus of 14.9 billion Euros in November.
French Gov Budget Balance stood at a deficit of 90.8 billion Euros in December as compared to a deficit of 98.2 billion Euros a month earlier.
The Euro came under pressure in yesterday’s trading session and declined by 0.1 percent, taking cues from deepening worries over Europe’s debt crisis coupled with dollar strength. The currency touched an intra-day low of 1.3218 and closed at the level of 1.3256 on Wednesday.
Japan’s Economy Watchers Sentiment declined by 2.9 points to 44.1-level in January as against previous mark of 47 in December.
Japan’s Core Machinery Orders declined by 7.1 percent in December as against a rise of 14.8 percent a month ago. M2 Money Stock increased at a slow pace by 3 percent in January from previous rise of 3.2 percent in prior month.
The US Dollar Index (DX) strengthened slightly by 0.1 percent on Wednesday and touched an intra-day high of 78.86.
However, sharp gains were capped due to rise in US equities which affected demand for dollar yesterday. The index ended its trading session at the level of 78.69 on Wednesday.
Escalating tensions with respect to Euro Zone debt crisis, with Greece being the matter concerns, we expect the US dollar to remain strong in today’s trade.
On account of this coupled with weak market sentiments, we expect the Indian Rupee to trade with a depreciation bias today.
Courtesy: Angel Commodities
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