Morning Report

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Tuesday, 25 August 2020

HeadLines

  • Dollar hangs on as currency market waits for Powell
  • Asian stocks near two-year high as virus treatment hopes lift mood
  • Oil prices rise as storms cut U.S. production

Major Currency Rates at 9:01 AM 

SymbolBidAsk
EUR/USD1.18031.1807
USD/JPY105.93105.94
GBP/USD1.31001.3101
USD/CHF0.91140.9115
AUD/USD0.71690.7170
NZD/USD0.65270.6529
USD/INR74.16874.171
XAU/USD1,934.741,935.18

Currencies

The dollar held firm on Tuesday, shrugging off selling pressure from a move higher in equities, as investors seemed to temper their bearish bets against the greenback ahead of a Thursday speech from U.S. Federal Reserve Chair Jerome Powell.

A small overnight rise in yields also supported the dollar and against a basket of currencies . It held the line at 93.282, about 1.3% higher than a two-year trough it hit a week ago.

USD / INR TECHNICAL LEVELS BASED ON DAILY CHART

DAILY CHART USD / INR
Resistance 274.80( 18 Day Moving Average )
Resistance 174.42( Bollinger Band )
Current Level74.16 / 74.17
Support 174.00( Big Figure )
Support 273.70( Weekly Bollinger Band )

Yesterday USD / INR both daily support of 74.60 and weekly support of 74.33 and settled at a new low of 74.16. We Expect 74 & 73.80 to hold in this rally and advise importers to book part imports upto Mid September at current levels.

Equity

Asia’s stock markets opened higher on Tuesday following a Wall Street rally driven by vaccine hopes, while the dollar found some support ahead of a key central bank speech.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% to its highest since early January and sits just a fraction below a two-year high. Japan’s Nikkei opened 1% higher and banking stocks led Australia’s S&P/ASX 200 up 0.8%. Futures pointed to a steady open in Hong Kong and China. S&P 500 futures rose 0.3% in Asia.

SymbolLastChangeChange%
Dow 3028,308.50378.131.35%
S&P 5003,431.2834.121.00%
Nasdaq 10011,626.2071.010.61%
FTSE 100988.0015.001.54%
SGX Nifty11,501.8023.600.21%

OIL

Oil prices rose on Monday as storms headed for the Gulf of Mexico shut more than half of the region’s offshore production, with the more dangerous of the two storms expected to strike later in the week.

Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil supply in the U.S. Gulf of Mexico and evacuated more than 100 production platforms because of the twin threat from Tropical Storms Marco and Laura.

Brent crude  settled at $45.13 a barrel, gaining 78 cents, or 1.76%, while U.S. West Texas Intermediate crude  settled at $42.62 a barrel, rising 28 cents, or 0.66%.

MAJOR ECONOMIC EVENTS FOR Tuesday, 25 August 2020

TimeCurrEventForecastPrevious
11:30EURGerman GDP (QoQ) (Q2)-10.1%-2.2%
11:30EURGerman GDP (YoY) (Q2)-11.7%-1.9%
19:30USDCB Consumer Confidence (Aug)93.092.6
19:30USDNew Home Sales (Jul)785K776K

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.