Monday, 27 July 2020
- Dollar struggles amid Sino-U.S. tensions, coronavirus woes
- Global stocks on defensive as U.S.-China tensions spook investors
- Oil slips as rising coronavirus cases, U.S.-China tensions weigh on markets
Major Currency Rates at 8 AM
The dollar began the week under pressure from all corners as intensifying Sino-U.S. tensions added to worries that the coronavirus resurgence in United States could undermine the recovery in the world’s biggest economy.
In morning trade it fell to a four-month low against the yen and a new 22-month trough on the euro. The lack of support for the greenback, even as tit-for-tat consular closures marked the latest escalation in U.S.-China tensions, is a shift for the dollar which has been closely tracking global sentiment through the coronavirus crisis.
USD / INR Technical Analysis
The rupee is likely to open around 74.76. Last Week it touched 74.50 where the central Bank was seen buying dollars.
The Rupee is likely to have strong resistance at 74.95 (14 Day Moving Average) and 75.05 (previous bottoms) and support at 74.50 (double bottom) and 74.38 (Bollinger Band)
U.S. stock futures slipped and Asian shares came under pressure in early Monday trade as tit-for-tat consulate closures in China and the United States fanned worries about worsening diplomatic ties between the world’s two largest economies.
S&P500 futures dropped 0.2% while Nasdaq futures lost 0.3%. Japan’s Nikkei fell 1.3%, re-opening after a long weekend. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat. Global shares lost steam late last week after Washington ordered China’s consulate in Houston to close, prompting Beijing to react in kind by closing the U.S. consulate in Chengdu.
Oil prices edged down on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Brent crude dipped 10 cents, or 0.2%, to $43.24 a barrel while U.S. West Texas Intermediate (WTI) crude was at $41.24 a barrel, down 5 cents.
Source : Reuters