Tuesday, 14 July 2020
- Dollar in narrow range as U.S.-China tensions simmer, virus cases rise
- Asian markets struggle to digest coronavirus spike
- Oil slips on surge in COVID-19 infections, U.S.-China tension
Currencies
The dollar was hemmed into narrow ranges against most currencies on Tuesday as renewed concerns about diplomatic tension between the United States and China and rising coronavirus cases put a dent in risk appetite.
The dollar stood at 107.35 yen on Tuesday in Asia following a 0.4% gain in the previous session.The dollar traded at 0.9419 Swiss franc after eking out three consecutive sessions of narrow gains. The euro was quoted at $1.1346, resting below a one-month high reached on Monday. The common currency traded at 90.36 pence , holding onto a 0.9% gain from the previous session.
Our View on USD / INR
The rupee is likely to open around 75.21.
The Rupee is likely to have resistance at 75.33 (100 DMA) and 75.46 (Bollinger Band) and support at 74.94 (7 DMA) and 74.38 (Bollinger Band)
Equity
Asian shares are showing a mixed picture on Tuesday after a volatile day in U.S. equity markets amid persistent concerns over the record number of new coronavirus cases worldwide and signs of an economic rebound.
Australian S&P/ASX 200 futures lost 0.76% in early trading, Japan’s Nikkei 225 futures added 0.22%, and Hong Kong’s Hang Seng index futures rose 0.39%.E-mini futures for the S&P 500 rose 0.21%.
On Monday, the S&P 500 dropped 0.94% after touching its highest level since Feb. 24 earlier in the trading day. The tech-heavy Nasdaq Composite dropped 2.13%, driven by declines in some outperforming big names, including Amazon and Microsoft. The Dow Jones Industrial Average rose 0.04%.
Our View on Stock Market
The Indian stock market is expected to open negative around 40 to 50 points from previous close tracking the asian peers.
The Nifty futures are likely to open around 10,760.
The likely range for the day is 10,650 – 10,850
OIL
Oil prices slipped about 1% on Monday after global coronavirus cases rose by a record daily amount, fanning fears of renewed government lockdowns, and on growing U.S. and European tension with China.
Brent futures fell 52 cents, or 1.2%, to settle at $42.72 a barrel, while U.S. West Texas Intermediate (WTI) crude lost 45 cents, or 1.1%, to settle at $40.10.
Source : Reuters
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