The Indian rupee was the second-best performer in Asia

The rupee settled at 72.4350 against 73.45 at the previous close. The local unit moved in 72.4350-73.21 per dollar band intra-day.
The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war. There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term U.S. polls.

The dollar fell on Friday before U.S. jobs data as U.S. President Donald Trump resumed efforts to resolve a damaging trade war with China. Trump and Xi spoke on the phone regarding trade on Friday, boosting sentiment that a trade deal will be reached when the two meet at G-20 summit later this month. Investors are also waiting for nonfarm payrolls data. A better than expected number could boost the greenback, as it would support the Federal Reserve increasing interest rates in December.
The euro was boosted higher by the lower dollar, with EUR/USD rising 0.22% to 1.1432. The euro has been under pressure all week by political uncertainty in Germany and an ongoing feud between Rome and Brussels over Italy’s budget.

Oil prices steadied on Friday after a week of heavy falls as markets braced for the imposition next week of U.S. sanctions on Iran, which Washington hopes will halt exports of Iranian oil. The contract has fallen almost 6 percent this week and more than 11 percent since the beginning of October when it reached its highest since 2014.
Gold prices rose slightly on Friday, setting the market on course for a fifth week of gains, as the dollar retreated amid expectations of a thaw in U.S.-China trade tensions.

Date	Time	Currency	Event	Actual	Forecast	Previous
02-11-2018	14.25	EUR	German Manufacturing PMI (Oct)	52.2	52.2	52.2
02-11-2018	15.00	GBP	Construction PMI (Oct)	53.2	52.0	52.1

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