Wednesday, 29 July 2020
- Dollar bounces before Fed meeting, further weakness expected
- Asian stocks under pressure, gold rallies on U.S. stimulus impasse
- Oil falls as U.S. stimulus package faces tough talks
Major Currency Rates at 8 AM
The dollar index bounced off a two-year low on Tuesday but looked primed for further weakness as the United States continued to see a rise in coronavirus cases, while the Federal Reserve is expected to maintain very loose monetary policies.
The dollar index against a basket of currencies gained 0.18% to 93.71, after dropping to 93.47 on Monday, the lowest since June 2018. The continued spread of coronavirus is hampering the U.S. economic recovery, while regions like Europe appear to have the virus contained.
USD / INR Technical Analysis
The rupee is likely to open around 74.90.
The Rupee is likely to have strong resistance at 74.95 (14 Day Moving Average) and 75.46 (Bollinger Band) and support at 74.74 (7 day Moving Average) and 74.50 (double bottom).
Asian equities pulled backed on Wednesday as an impasse in U.S. economic stimulus negotiations pushed global stocks lower and sent investors into safe-haven assets like gold, which hovered near record highs.
Hong Kong’s Hang Seng index futures were down 0.14%. Australian S&P/ASX 200 was flat while Japan’s Nikkei 225 futures dipped 0.5%.U.S. data released on Tuesday showed consumer confidence ebbed in July as coronavirus infections flared across the country.The data, along with stimulus concerns, weighed down Wall Street, where the Dow Jones Industrial Average fell 0.77%, the S&P 500 dipped 0.65%, and the Nasdaq Composite lost 1.27%.
Singapore nifty SGX was trading flat at 11,300
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 19 cents, or 0.4%, to settle at $43.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.4%, to settle at $41.04 a barrel.
Source : Reuters