The ECB removed the line that they will increase the APP if required, which was hawkish and took EURUSD to 1.2440. But the lower revision in inflation forecasts (10bps) and a dovish Draghi during the press conference resulted in EURO getting sold off to the current 1.231 levels. A break of 1.2264 could take the EURO lower than 1.2150 now.
Asian markets cheered up on the news that NKs Kim is going to meet Trump before May 2018. This is unprecedented and perhaps brings in the possibility of a nuclear weapons free Korean peninsula. On the other hand markets ignored the fact that Trump signed the tariffs for steel and aluminium and put the economic world on the brink of a trade war. Today we have the NFP which will decide the course for the dollar index into next week.
USDINR 1m NDF is flat while FIIs continue to pull out small chunks everyday from debt and equity markets. The view of INR appreciation gets checked given the turn in EURUSD and dollar index. Although equities in Asia and locally are in the green, but we have seen significant bids in USDINR irrespective of equity gains yesterday and today morning. CMP 65.10, Range 65.04-65.24.
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