Wednesday, 22 July 2020
- Dollar licks wounds as investors fret over U.S. stimulus
- Asia markets to open lower on pandemic worries, shrugging off U.S. equities upswing
- Oil prices fall on U.S. inventory build, increasing pandemic fears
The dollar nursed losses against most currencies, undermined by concern that Republicans and Democrats are struggling to reach consensus on the next round of U.S. economic stimulus measures.
The euro traded near its strongest level in more than a year on Wednesday after European leaders agreed a stimulus plan to fuel recovery from the economic drag caused by the COVID-19 pandemic. Risk appetite has improved greatly this week as progress in developing vaccines for the novel coronavirus reduced the U.S. dollar’s safe-harbour appeal.
USD / INR Technical Analysis
The rupee is likely to open stronger around 74.54 due to dollar weakness across the Globe.
The Rupee is likely to have resistance at 74.94 (14 Day Moving Average) and 75.02 (7 Day moving average) and support at 74.41 (Bollinger Band)
Asia shares were set to open lower on Wednesday after U.S. President Donald Trump’s comments regarding the country’s surge in novel coronavirus cases outweighed a slight rally on Wall Street.
Australian S&P/ASX 200 futures lost 1.06% in early trading. Japan’s Nikkei 225 futures added 0.24%, while Hong Kong’s Hang Seng index futures lost 0.34%. E-mini futures for the S&P 500 rose 0.13%.
SGX Nifty is reading Flat at 11,184. It has support at 10,850 and resistance at 11,200.
Oil prices fell on Wednesday as industry data showed a bigger- than-expected inventory build in the United States where coronavirus cases continue to climb, potentially further denting demand in the world’s biggest oil consumer.
U.S. crude inventories rose last week by 7.5 million barrels compared with expectations for a draw of 2.1 million. Brent crude fell 32 cents, or 0.7%, to $44 a barrel, and U.S. West Texas Intermediate (WTI) crude dropped 33 cents, or 0.8%, to $41.59.
Source : Reuters
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