Wednesday, 15 July 2020
- Euro hits four-month high vs. dollar on stimulus, recovery hopes
- Asian markets set to shake off coronavirus spread, U.S.-China tensions
- Oil rises after U.S. crude stocks drop, focus on OPEC+ meeting
The euro rose to a four-month high against the dollar on Wednesday on hopes European Union leaders may agree on stimulus and deepening fiscal integration to shield the economy from the pandemic.
The dollar was on the defensive, particularly against other growth-leveraged currencies such as the Australian dollar, following an uptick in U.S. inflation and news of progress in vaccine development.The euro rose to as high as $1.1423 , its highest level since March 10.
The euro has been helped by hopes the European Union could agree at its summit later this week on a rescue financing package that will limit the economic damage to the bloc from the coronavirus pandemic.The euro’s strength helped to push the dollar index to 96.056, one-month low. The risk-sensitive Australian dollar rose 0.2% to $0.6985
Our View on USD / INR
The rupee is likely to open around 75.40.
The Rupee is likely to have resistance at 75.50 and 75.75 and support at 75.17 (14 DMA) and 75.05 (7 DMA)
Asian markets appeared set to shake off heightened tensions between the United States and China and the spread of coronavirus, with stock futures pointing to early gains on Wednesday.
Australian S&P/ASX 200 futures rose 0.47% in early trading, Japan’s Nikkei 225 futures N were up 0.7%, and Hong Kong’s Hang Seng index futures rose 0.46%.E-mini futures for the S&P 500 EScv1 rose 0.82%.
The strong signals for Asian markets came after U.S. investors shook off lingering bad news about the spread coronavirus to send major indices higher on Tuesday, buoyed by a rise in cyclical stocks. The Dow Jones Industrial Average rose over 2%, while the S&P 500 gained 1.34% and the Nasdaq Composite climbed 0.94%.
Our View on Stock Market
The Indian stock market is expected to open positive around 80 to 90 points from previous close tracking the asian peers.
The Nifty futures are likely to open around 10,700.
The likely range for the day is 10,600 – 10,800
Oil prices rose on Wednesday after a sharp drop in U.S. crude inventories, with the market waiting for more direction from a meeting later in the day on the future level of production by OPEC and its allies.
Brent crude futures were up 10 cents, or 0.2%, at $43 a barrel , and U.S. West Texas Intermediate (WTI) crude futures rose 14 cents, or 0.4%, to $40.43 a barrel.
In a sign of improving demand despite the coronavirus pandemic, U.S. crude inventories fell by 8.3 million barrels in the week to July 10, beating analysts’ expectations for a decline of 2.1 million barrels
Source : Reuters
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