Monday, 20 July 2020
- Euro hovers near four-month peak as market looks to EU summit
- Asian shares defensive; eyes on EU summit, U.S. stimulus talks
- Oil falls as worsening pandemic threatens recovery
The euro hovered near four-month highs against the dollar on Monday as investors held on to hopes that European leaders would break a deadlock and hammer out an economic rescue deal as their marathon summit reached a record length.
The dollar is broadly weak as investors maintained strong risk appetite, betting on more stimulus not just from Europe but also the United States.The dollar index stood at 95.949, near three-month low of 95.716 touched last month.
Our View on USD / INR
The rupee is likely to open stronger around 74.90 due to rally in riskier assets.
The Rupee is likely to have resistance at 75.02 (14 Day Moving Average) and 75.14 (7 Day moving average) and support at 74.52 (Bollinger Band)
Asian shares began warily on Monday as investors eyed efforts to stitch together more fiscal stimulus in the eurozone and United States to help economies ride out the effects of a record jump in COVID-19 cases globally.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat at 541.49, with Australian shares down 0.3% and South Korea’s KOSPI just a shade higher. Japan’s Nikkei was up 0.1%.E-minis for the S&P 500 rose 0.1% in early Asian trading.
Oil prices dipped on Monday, weighed down by the prospect that a rise in the pace of coronavirus infections could derail a recovery in fuel demand.
Brent crude was down 10 cents, or 0.2%, at $43.04 a barrel, after dropping slightly last week. U.S. oil was off by 6 cents, or 0.2%, at $40.53 a barrel, after gaining 4 cents last week.
Source : Reuters