Monday, 17 August 2020
- Dollar in the doldrums; U.S. politics, Fed minutes eyed
- Asia shares pause near highs, eyes on U.S. yields
- Oil prices advance as China lines up boost in U.S. crude imports
Major Currency Rates at 8:13 AM
The U.S. dollar began Monday where it left off last week, caught between pressure from worries about the lagging U.S. economic recovery and support from rising U.S. bond yields and safe-harbour demand.
A boost to sentiment from the postponement of the U.S-China trade deal review – which leaves the deal intact – was muted by uncertainty, ahead of a week a week that includes Federal Reserve minutes and the Democrats’ nomination convention.
Against a basket of currencies the dollar traded under gentle pressure at 93.039 on Monday, roughly in the middle of the range it has held since hitting a two-year low at the end of July.
USD / INR Technical Analysis
Asian shares dozed near recent highs in quiet trade on Monday as investors waited to see if the recent sell-off in longer-dated U.S. Treasuries would extend, and maybe take some pressure off the beleaguered dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.02% lower at 562, but still eyeing the January top of 574.52. Japan’s Nikkei dipped 0.4% after touching a six-month peak on Friday, as the country suffered its biggest economic contraction on record in the second quarter. E-Mini futures for the S&P 500 firmed 0.25% in early trade to be just below its record close of 3,386.15.
Oil prices climbed higher on Monday, lifted by China’s plans to ship in large volumes of U.S. crude in August and September, outweighing concerns over a slowdown in demand recovery after the coronavirus pandemic and an uptick in supplies.
Brent crude rose 21 cents, or 0.5%, to $45.01 a barrel while U.S. West Texas Intermediate crude was up 27 cents, or 0.6%, to $42.28 a barrel.
Disclaimer : All information in this report is collected from various sites on internet. The technical analysis is authors own views. We do not take any responsibility for any errors and omissions.