Monday, 13 July 2020
- Dollar starts week on back foot ahead of data, earnings
- Asian shares firm, hope for best from U.S. earnings
- Oil slips as traders eye supply cut easing at OPEC meeting
The U.S. dollar started the week with a soft tone on Monday as investors looked to looming economic data from around the world and U.S. corporate earnings to gauge whether the markets’ guarded optimism on the economic outlook is justified.
The dollar index against a basket of currencies stood at 96.586, down slightly after having lost about 0.5% last week. The Chinese yuan stood flat at 7.0068 per dollar in early trade.The euro traded at $1.1314 , maintaining its slow uptrend since late last month. The dollar traded at 106.915 yen , off two-week lows of 106.635 set on Friday.
Our View on USD / INR
The rupee is likely to open around 75.19.
The Rupee is likely to have resistance at 75.33 (100 DMA) and 75.46 (Bollinger Band) and support at 74.93 (7 DMA) and 74.38 (Bollinger Band)
Asian shares got off to a firm start on Monday as investors wagered U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15%, having climbed sharply to a five-month peak last week on the back of surging Chinese stocks.Japan’s Nikkei gained 1.3% and South Korea 0.9%. E-Mini futures for the S&P 500 rose 0.2%.
Our View on Stock Market
The Indian stock market is expected to open positive around 40 to 50 points from previous close tracking the asian peers.
The Nifty futures are likely to open around 10,820.
The likely range for the day is 10,700 – 10,900
Oil slipped in early Asian trade on Monday as traders eyed an OPEC technical meeting this week which is expected to recommend an easing in supply cuts that have been propping up crude prices.
Brent crude fell 27 cents to $42.97 a barrel by 0114 GMT while U.S. West Texas Intermediate crude was at $40.27 a barrel, down 28 cents.
Source : Reuters
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