Wednesday, 5 August 2020
HeadLines
- Dollar rally fizzles as investors eye stimulus talks in Washington
- Asia shares poised to open lower, gold at fresh record
- Gold soars past $2,000, gold up on stimulus plan
- Oil edges up to highest since March on hopes for U.S. stimulus
Major Currency Rates at 8:50 AM
Currencies
The U.S. dollar edged lower in choppy trade against a basket of currencies on Tuesday, choking off a recent rally fueled by dollar bears taking profits on short positions, while investors watched talks in Washington on the next round of coronavirus relief.
After its biggest monthly decline in a decade in July, the greenback started August on a firmer note as some investors trimmed short positions.But the immediate outlook for the dollar remains tied partly to relief aid talks in Washington and the economic impact of new virus cases in the United States. The U.S. Dollar Currency Index which measures the greenback’s strength against six major currencies, was 0.16% lower after rising 0.6% over the previous two sessions.
USD / INR Technical Analysis
The rupee is likely to open around 75.06.
The Rupee is likely to have resistance at 75.18 (50 Day Moving Average) and 75.40 (Bollinger Band) and strong support at 74.98 (7 & 18 Day Moving Average) and 74.53 (Bollinger Band).
GOLD
Gold surged past the $2,000 mark on Tuesday after Democrats and the White House appeared closer to agreement on new stimulus to help the coronavirus-hit economy while stocks on Wall Street ended higher as investors awaited more aid from Washington. Gold prices breached the psychological $2,000 level for the first time, propelled by stimulus concerns.
Equity
Asia shares were set to open lower on Wednesday, following a choppy trading session on Wall Street and losses in Europe.
Hong Kong futures edged down 0.07%. Australian shares were also poised to open lower as COVID-19 rose in the country. Nikkei futures were trading 0.3% below the Nikkei 225 index’s previous close. Wall Street shares ended higher after choppy trade as hopes mounted U.S. leaders would agree on another coronavirus stimulus package. The Dow Jones Industrial Average gained 0.62%, the S&P 500 rose 0.36% and the Nasdaq Composite added 0.35%.
OIL
Brent oil futures on Tuesday closed at their highest since early March on hopes the United States is making progress on a new economic stimulus package, as well as curbing the coronavirus spread.
Brent rose 28 cents, or 0.6%, to settle at $44.43 a barrel, its highest close since March 6. U.S. West Texas Intermediate (WTI) crude rose 69 cents, or 1.7%, to $41.70, its highest finish since July 21.
Source : Reuters