Morning Report

Wednesday, 27 May 2020

  • Asia Stocks Mixed as economic recovery and US China strain happens simultaneously
  • Dollar weakens as investors’ risk appetite ramps up 
  • Oil slips on demand worries, Hong Kong tensions

Our View on USD / INR

In our view Indian Rupee is likely to open around 75.45 levels. It is likely to get support around 75.30 levels and any dip towards 75.10 should be bought. It is likely to have resistance near 75.65 levels and any spike towards 75.80 should be sold in intraday activity. 

World Markets at a glance

Futures on the S&P 500 fluctuated after the index closed at an 11-week high. The S&P 500 gave up almost half its gains in the final half hour of trading Tuesday after a report that the Trump administration is considering sanctions on Chinese officials.

Futures on the S&P 500 Index rose 0.2% as of 10:38 a.m. in Tokyo. The gauge added 1.2% on Tuesday. Japan’s Topix index added 0.5%. South Korea’s Kospi index rose 0.4%. Australia’s S&P/ASX 200 Index was little changed. Hang Seng Index rose 0.2%.Shanghai Composite dipped 0.1%.

The U.S. dollar fell across the board on Tuesday as optimism about a potential coronavirus vaccine and a reopening world economy helped investors shrug off U.S.-China tension. The U.S. Dollar Currency Index =USD, which measures the greenback’s strength against six other major currencies, traded down 0.75% at 98.99, after slipping as low as 98.891, its weakest since May 1.

Oil prices fell on Wednesday on revived concerns over how quickly fuel demand will recover even as coronavirus lockdowns begin to ease in many countries, while U.S.-China tensions added to negative sentiment. Brent crude futures fell 21 cents, or 0.6%, to $35.96  U.S. West Texas Intermediate (WTI) crude futures were down 31 cents, or 0.9%, at $34.04 a barrel.

Source : Reuters

Published by prashanti forex

Prashanti Forex is managed by a certified treasury professional with an experience of more than 15 years in Finance and Advisory Business. His expertise come from various organisations, where he has gained knowledge and deep understanding of financial environment. His Principle Objective is providing customised advise with excellent service, committing a relationship based on integrity, understanding, honesty and trust. We are glad to offer you a boutique of services which will enable your organisation to enhance the profitability and efficiently manage the business risks. Our Services are : Treasury & Risk Management Solutions Trade Finance Wealth Management

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