Tuesday, 7 July 2020
- Dollar wallows as data temper recovery doubts
- Asian stocks set to follow U.S. higher on China hopes, upbeat data
- Oil steady as hopeful economic data face spike in virus cases
The dollar nursed losses on Tuesday and riskier currencies added a fraction to galloping gains, after better-than-expected U.S. services data provided the latest boost to confidence in a worldwide economic recovery from the COVID-19 pandemic.
Against a basket of currencies, the dollar huddled near a two-week low. The Chinese yuan picked up where it left off after soaring with runaway Chinese equities on Monday and briefly broke past the 7 per dollar barrier.
Our View on USD / INR
The rupee is likely to open flat around 75.63 and likely to appreciate following Dollars Weakness globally and India, China Troops Disengaging At Tense Border.
The Rupee is likely to have resistance at 75.03 (Trendline) and 75.17 (7 DMA) and support at 74.34 (7 month moving average) and 74.00 (Big Figure)
Asian markets looked set to rise on Tuesday as investors weighed growing expectations of an economic rebound in China and a resurgent U.S. services industry, brushing off worries about a spike in U.S. coronavirus cases.
Australian S&P/ASX 200 futures climbed 0.52%, while Japan’s Nikkei rose 0.07%, and Hong Kong’s Hang Seng index futures were up 0.68%. E-mini futures for the S&P 500 rose 0.08% following a rally in global stocks on Monday.
On Wall Street, the Dow Jones Industrial Average rose 1.78%, the S&P 500 gained 1.59% and the Nasdaq Composite 2.21%. Emerging market stocks rose 2.65% while MSCI’s broadest index of Asia-Pacific shares outside Japan closed 2.46% higher on Monday.
Our View on Stock Market
The Indian stock market is expected to open Flat to Slightly negative around 20 to 30 points from yesterday close.
The Nifty futures are likely to open around 10,730.
The likely range for the day is 10,550 – 10,800
Oil futures ended largely steady on Monday as positive economic data supported prices, while a spike in coronavirus cases in the United States that could curb fuel demand pressured prices.
Brent crude settled at $43.10 a barrel, up 30 cents. U.S. West Texas Intermediate (WTI) crude settled at $40.63 a barrel, down 2 cents.
Source : Reuters
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