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Thursday, 27 August 2020
HeadLines
- Dollar on back-foot as investors look for dovish Fed signals
- Asia shares set to rise after U.S. equities hit new record in tech spike
- Oil steady as huge Gulf of Mexico storm shuts down production
Major Currency Rates at 8:32 AM
| Symbol | Bid | Ask |
| EUR/USD | 1.1826 | 1.1829 |
| USD/JPY | 105.99 | 106.01 |
| GBP/USD | 1.3197 | 1.3198 |
| USD/CHF | 0.9079 | 0.9087 |
| AUD/USD | 0.7231 | 0.7232 |
| NZD/USD | 0.6623 | 0.6627 |
| USD/INR | 74.217 | 74.227 |
| XAU/USD | 1,941.33 | 1,941.62 |
Currencies
The dollar wallowed near its lowest level for the week on Thursday as investors looked for hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation.
Powell is scheduled to address the Fed’s annual central bankers’ conference later in the day. Investors are betting the U.S. central bank will introduce a new policy framework to fight persistently low inflation as early as next month.
USD / INR TECHNICAL LEVELS BASED ON DAILY CHART
| Resistance 2 | 74.68 | ( 18 Day Moving Average ) |
| Resistance 1 | 74.47 | ( 7 Day Moving Average ) |
| Current Level | 74.20 / 74.21 | |
| Support 1 | 74.00 | ( Big Figure ) |
| Support 2 | 73.70 | ( 50 Week Moving Average ) |
Equity
Asian stocks will likely climb on Thursday after the S&P 500 and Nasdaq rallied to fresh records on upbeat corporate results, while the dollar eased a day before the U.S. Federal Reserve possibly sets a new course on inflation.
A gauge of global equity markets, MSCI’s all-country world index surged past the pre-COVID high reached in February. Australian S&P/ASX 200 futures rose 0.25% in early trading.Japan’s Nikkei 225 futures fell 0.04%, while the Nikkei 225 index closed the overnight session down 0.03% at 23,290.86 .Hong Kong’s Hang Seng index futures were up 0.12%.
| Symbol | Last | Change | Change% |
| Dow 30 | 28,331.90 | 83.48 | 0.30% |
| S&P 500 | 3,478.73 | 35.11 | 1.02% |
| Nasdaq 100 | 11,971.90 | 250.14 | 2.13% |
| FTSE 100 | 6,045.60 | 8.59 | 0.14% |
| SGX Nifty | 11,585.80 | 31.25 | 0.27% |
OIL
Oil prices were mixed in early trade on Thursday even as oil rigs and refineries shut ahead of a massive storm in the Gulf of Mexico racing towards Texas and Louisiana, with slim worries about the impact on supply as oil stockpiles remain high.
U.S. West Texas Intermediate (WTI) crude futures fell 5 cents, or 0.1%, to $43.34 a barrel , reversing a 4 cent gain on Wednesday. Brent crude futures inched up 2 cents to $45.66 a barrel after falling 22 cents, or 0.5%, on Wednesday.
MAJOR ECONOMIC EVENTS FOR Thursday, 27 August 2020
| Time | Curr | Event | Forecast | Previous |
| 18:00 | USD | GDP (QoQ) (Q2) | -32.5% | -5.0% |
| 18:00 | USD | GDP Price Index (QoQ) (Q2) | -2.0% | 1.6% |
| 18:00 | USD | Initial Jobless Claims | 1,000K | 1,106K |
| 18:30 | USD | Jackson Hole Symposium | ||
| 18:40 | USD | Fed Chair Powell Speaks | ||
| 19:30 | USD | Pending Home Sales (MoM) (Jul) | 3.0% | 16.6% |
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.
