Monday, 10 August 2020
- Dollar tries to keep rally alive in a short market
- Asian shares on backfoot as focus shifts to U.S. stimulus, China tensions
- Oil prices back on the rise on U.S. stimulus hopes, Iraq output cut
Major Currency Rates at 8:30 AM
The U.S. dollar was trying to keep a rare rally together on Monday as its longest losing streak in a decade left much of the market structurally short of the currency and vulnerable to a squeeze on any upbeat news.
Bears were caught out by a better payrolls report on Friday, which pushed Treasury yields higher into this week’s massive $112 billion debt sale. Yet the dollar still ended lower for the seventh week in a row. Against a basket of currencies, the dollar was a fraction firmer at 93.434 and just above a two-year trough.
|USD / INR TECHNICAL LEVELS BASED ON DAILY CHART|
|Support 1||74.98||Resistance 1||75.14|
|(18 Day Moving Average)||(50 Day Moving Average)|
|Support 2||74.57||Resistance 2||75.25|
|(Bollinger Band)||(Bollinger Band)|
Asian shares started cautiously on Monday as investors kept one eye on flaring tensions between the United States and China and another eye on U.S. fiscal stimulus after talks between the White House and Democrat lawmakers broke down.
MSCI’s broadest index of Asia-Pacific shares outside Japan stayed below a 6-1/2 month peak touched last week to be last at 560.17.Australian shares recouped Friday’s losses to be up 0.7% while South Korea’s main index added 0.4%.
Oil prices climbed in early trade on Monday, clawing back over half of Friday’s losses, on hopes for a stimulus deal to shore up the U.S. economic recovery and a pledge from Iraq to deepen its crude oil supply cuts.
U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 1.2%, to $41.71 a barrel , while Brent crude futures were up 40 cents, or 0.9%, at $44.80 a barrel.
Source : Reuters