Tuesday, 18 August 2020
- Dollar nurses losses as selling pressure builds on several fronts
- Asia shares set to follow Wall Street’s tech-driven rally
- Oil edges lower as suppliers try to hold line on output cuts
Major Currency Rates at 8:35 AM
The dollar teetered near milestone lows on Tuesday, after a triple blow of retreating yields, soft U.S. economic data and a dip in safe-haven demand exerted broad selling pressure.
Investors have been relieved by a delay in the review of the U.S.-China trade deal this week, which has left the agreement standing and reinforced a belief that the trade relationship can hold even amidst conflict on multiple other fronts and thus boosting risk assets.
USD / INR Technical Analysis
Asian equities were poised to track Wall Street’s tech fuelled rally on Tuesday that saw the Nasdaq benchmark hit a fresh record while oil prices perked up on Chinese demand and hopes Sino-U.S. trade tensions were easing.
Technology stocks continued their recent rally as investors see them as a firm beneficiary of coronavirus lockdowns, which have fuelled demand for products and services that enable people to work from home.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.
Oil prices edged lower on Tuesday, mostly holding onto overnight gains after OPEC+ said the producer grouping is almost fully complying with output cuts to support prices amid a drop in demand for fuels due to the coronavirus pandemic.
Brent crude was down 6 cents, or 0.1%, at $45.31 a barrel by 0027 GMT, after gaining 1.3% on Monday. U.S. crude was down 8 cents, or 0.2%, at $42.81 a barrel, having risen 2.1% in the previous session.
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.