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Wednesday, 5 August 2020

HeadLines

  • Dollar rally fizzles as investors eye stimulus talks in Washington
  • Asia shares poised to open lower, gold at fresh record
  • Gold soars past $2,000, gold up on stimulus plan
  • Oil edges up to highest since March on hopes for U.S. stimulus

Major Currency Rates at 8:50 AM 

Currencies

The U.S. dollar edged lower in choppy trade against a basket of currencies on Tuesday, choking off a recent rally fueled by dollar bears taking profits on short positions, while investors watched talks in Washington on the next round of coronavirus relief.

After its biggest monthly decline in a decade in July, the greenback started August on a firmer note as some investors trimmed short positions.But the immediate outlook for the dollar remains tied partly to relief aid talks in Washington and the economic impact of new virus cases in the United States. The U.S. Dollar Currency Index  which measures the greenback’s strength against six major currencies, was 0.16% lower after rising 0.6% over the previous two sessions.

USD / INR Technical Analysis

USD / INR Daily Chart

The rupee is likely to open  around  75.06.

The Rupee is likely to have resistance at 75.18 (50 Day Moving Average)  and 75.40 (Bollinger Band)  and strong support at 74.98 (7 & 18 Day Moving Average) and 74.53 (Bollinger Band).

GOLD

Gold surged past the $2,000 mark on Tuesday after Democrats and the White House appeared closer to agreement on new stimulus to help the coronavirus-hit economy while stocks on Wall Street ended higher as investors awaited more aid from Washington. Gold prices breached the psychological $2,000 level for the first time, propelled by stimulus concerns.

Equity

Asia shares were set to open lower on Wednesday, following a choppy trading session on Wall Street and losses in Europe.

Hong Kong futures edged down 0.07%. Australian shares were also poised to open lower as COVID-19 rose in the country. Nikkei futures were trading 0.3% below the Nikkei 225 index’s previous close. Wall Street shares ended higher after choppy trade as hopes mounted U.S. leaders would agree on another coronavirus stimulus package. The Dow Jones Industrial Average gained 0.62%, the S&P 500 rose 0.36% and the Nasdaq Composite added 0.35%.

OIL

Brent oil futures on Tuesday closed at their highest since early March on hopes the United States is making progress on a new economic stimulus package, as well as curbing the coronavirus spread.

Brent rose 28 cents, or 0.6%, to settle at $44.43 a barrel, its highest close since March 6. U.S. West Texas Intermediate (WTI) crude rose 69 cents, or 1.7%, to $41.70, its highest finish since July 21.

Source : Reuters

Morning Report


✆  +91 84528 08533    ✉︎   prashanti.forex@gmail.com  🌐 prashantiforex.in

Tuesday, 4 August 2020

HeadLines

  • Dollar falters as investors await U.S. stimulus deal
  • Asia stocks rise as upbeat factory data lifts confidence
  • Oil rises more than 1% on hopes for economic recovery

Major Currency Rates at 8 AM

Currencies

A nascent rebound in the dollar paused on Tuesday, as investors weighed mixed but encouraging economic data against slow progress toward a U.S. government spending package and another week of rising coronavirus deaths.

The dollar’s traded at 93.574 against a basket of currencies – below a one-week top of 93.997 hit on Monday.

USD / INR Technical Analysis

USD / INR Daily Chart

The rupee is likely to open  around  75.20. Yesterday the Indian rupee rallied up by 45 paise after the Equity market corrected sharply

The Rupee is likely to have resistance at 75.33 (50 Day Moving Average)  and 75.59 (100 Day Moving Average)  and support at  74.99 (Ichimoku Cloud) and 74.52 (Bollinger Band).

Equity

Asian shares rose on Tuesday after strong U.S. manufacturing data and gains in tech stocks helped investors look past broader worries about the coronavirus and global economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%, while shares in China nudged up 0.1%. Australian stocks gained 2% for the biggest intraday gain since July 21. Tokyo shares also jumped by more than 1%. On Monday the Dow Jones Industrial Average rose 0.89%, the S&P 500 gained 0.72%, and the Nasdaq Composite advanced 1.47% to set a record closing high as investors cheered the manufacturing data.

OIL

Oil prices were up more than 1% on Monday on positive economic data from the United States, Europe and Asia, but investors remained concerned about rising COVID-19 cases globally and oversupply as OPEC begins to lift supply cuts.

Brent crude settled at $44.15 a barrel, rising 63 cents, or 1.5%. U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1.8%, to end at $41.01 a barrel.

Source : Reuters

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