Monday, 6 July 2020
- Dollar in tight range ahead of U.S. services sector data
- Asia shares at four-month peak, stimulus trumps virus fears
- Oil prices mixed as coronavirus spike casts shadow over U.S. demand
Currencies
The dollar held steady against most currencies on Monday as investors awaited data expected to show the U.S. services sector stopped contracting, and highlighting the economic recovery from the coronavirus pandemic.
The dollar held steady at 107.56 yen on Monday in Asia following a 0.3% gain last week. The euro changed hands at $1.1247. Against the British pound, the common currency bought 90.18 pence. Sterling moved in a narrow range at $1.2474. Against the Swiss franc, the dollar was quoted at 0.9455.
Our View on USD / INR
The rupee is likely to open flat around 75.63 after appreciating sharply last week.
The Rupee is likely to have resistance at 75.17 (7 DMA) and 75.54 (14 DMA) and support at 74.34 (7 month moving average) and 74.00 (Big Figure)
Equity
Asian shares held near four-month highs on Monday as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery even as surging coronavirus cases delayed reopening across the United States.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05%, having hit its highest since February. E-Mini futures for the S&P 500 firmed 0.3%.
Our View on Stock Market
The Indian stock market is expected to open positive around 90 to 100 points from yesterday close.
The Nifty futures are likely to open around 10,675.
The likely range for the day is 10,500 – 10,800
OIL
Oil prices offered up a mixed market snapshot on Monday, with Brent crude edging higher, supported by tighter supplies, while U.S. benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb oil demand in the United States.
Brent crude rose 11 cents, or 0.3%, to $42.91 a barrel after a 4.3% gain last week, while U.S. West Texas Intermediate crude was at $40.35, down 30 cents, or 0.7%
Source : Reuters
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