Barclays Analysts Expect Market Rally After India-Pakistan Ceasefire

Barclays Analysts Expect Market Rally After India-Pakistan Ceasefire

Barclays FICC Research analysts predict a relief rally in Indian and Pakistani markets following the India-Pakistan ceasefire agreement and planned talks. According to Mitul Kotecha, head of forex and emerging-market macro strategy in Asia, the ceasefire could lead to a reversal of INR losses and reduced market volatility.

Kotecha suggests that if the USD/INR breaks below the 200-day moving average of 85.03, it would be a positive technical signal for the Indian rupee. As of Friday, USD/INR closed 0.15% lower at 85.3810.