Tuesday, 21 July 2020
- EU progress and vaccine hopes keep pressure on dollar
- Asian markets set to track U.S. gains on vaccine, EU deal hopes
- Oil steady as vaccine news counters rise in virus cases
Progress toward both a coronavirus vaccine and a fiscal rescue package in Europe put the dollar under pressure and supported commodity currencies and the euro on Tuesday. European Union leaders appear close to an agreement on a massive stimulus plan for the bloc as the summit drags beyond a fourth day.
Hopes for a breakthrough pushed the euro to a four-month high of $1.1467 and it held just below that level at $1.1460 in Asian trade. Against a basket of currencies the dollar traded at a more than four-month low of 95.687
USD / INR Technical Analysis
The rupee is likely to open stronger around 74.76 due to rally in riskier assets.
The Rupee is likely to have resistance at 75.01 (14 Day Moving Average) and 75.11 (7 Day moving average) and support at 74.47 (Bollinger Band)
Asian shares were set to open higher on Tuesday after U.S. markets gained ground on positive data from trials of three potential COVID-19 vaccines and hopes that the European Union would finalise a recovery fund.
Australian S&P/ASX 200 futures rose 0.70% in early trade while Japan’s Nikkei 225 futures were up 0.02%, or 0.47% higher than the Nikkei’s close on Monday.Hong Kong’s Hang Seng index futures rose 0.92%. E-mini futures for the S&P 500 slipped 0.08%. The Dow Jones Industrial Average rose 0.03%, the S&P 500 gained 0.84% and the Nasdaq Composite jumped 2.51%.
Oil prices were little changed on Tuesday, trapped in the narrow trading band of the past three weeks as investors gauged hopes for a recovery in oil demand against fears of new lockdowns due to a growing number of coronavirus cases.
Brent futures were up 15 cents, or 0.4%, at $43.43, while West Texas Intermediate (WTI) edged up 2 cents to $40.83.
Source : Reuters
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