Thursday, 23 July 2020
HeadLines
- Dollar finds footing as Sino-U.S. tensions escalate
- Asia markets set to come under pressure as U.S.-China ties worsen
- Oil edges down for second session as coronavirus curbs fuel demand
Major Currency Rates at 8 AM
Currencies
The dollar crept off milestone lows against other majors on Thursday, and held on to gains against the yuan, as heightened Sino-U.S. tension put a bit of caution into currency markets.
The United States gave China until Friday to close its consulate in Houston amid accusations of spying, and President Donald Trump said it was “always possible” other Chinese missions could be ordered to close as well.
China has vowed to respond and the escalation in tension between the world’s two largest economies sent the yuan on its sharpest slide in nearly two months on Wednesday and has helped the greenback find support in Asian trade on Thursday.
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 strong resistance at 74.93 (7 Day and 14 Day Moving Average) and 75.09 (Bollinger Band) and support at 74.34 (Bollinger Band)
Equity
Asian stocks were likely to come under pressure on Thursday as fresh diplomatic tensions between Washington and Beijing heightened investor jitters and overshadowed the boost to Wall Street from U.S. stimulus hopes.
In early Asian trade, Japan’s Nikkei 225 futures lost 0.02% while Hong Kong’s Hang Seng index futures fell 0.05%.Australian S&P/ASX 200 futures rose 0.12% and E-mini futures for the S&P 500 were up 0.13%.
U.S. equities settled higher on strength in corporate earnings and the stimulus hopes. The Dow Jones Industrial Average rose 0.62%, the S&P 500 gained 0.57% and the Nasdaq Composite added 0.24%.
SGX Nifty is reading Flat at 11,123. It has support at 10,900 and resistance at 11,200.
OIL
Oil prices lost more ground on Thursday, with the market weighed down by a surprise increase in U.S. crude oil reserves as the coronavirus pandemic hits fuel consumption.
U.S. crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases has started to hit U.S. consumption.
Brent crude fell 4 cents, or 0.1%, to $44.25 a barrel while U.S. West Texas Intermediate (WTI) crude slid 6 cents, or 0.1%, to $41.84 a barrel.
Source : Reuters
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