Monday, 31 August 2020
HEADLINES
- Dollar set for fourth monthly drop; yen steadies on reports of Suga run for PM
- Asian stocks reach 29-month top, China services surprisingly strong
- Oil prices edge up on stimulus support despite ample supplies
CURRENCIES
The dollar was poised to register its fourth consecutive monthly decline on Monday, its longest streak since the summer of 2017, while the yen steadied after a longtime lieutenant of Shinzo Abe reportedly joined the race to succeed him as Japan’s leader. Yoshihide Suga, Chief Cabinet Secretary to Abe, would be expected to extend the fiscal and monetary stimulus that defined Abe’s term in government.
MAJOR CURRENCY LEVELS AT 8:55 AM
| Currency | BID | ASK |
| EUR/USD | 1.1913 | 1.1917 |
| USD/JPY | 105.49 | 105.50 |
| GBP/USD | 1.3351 | 1.3355 |
| USD/CHF | 0.9036 | 0.9037 |
| AUD/USD | 0.7367 | 0.7369 |
| NZD/USD | 0.6737 | 0.6739 |
| USD/INR | 73.113 | 73.117 |
| XAU/USD | 1,970.85 | 1,971.23 |
USD / INR TECHNICAL LEVELS
Last week USD / INr broke a weekly support of 73.70 and crashed to 73.10 levels due to dollar weakness and Inflows in the market. Dollar continues to be weak globaly and Equity markets are making new highs. Under these circumstances, we expect more downward pressure on USD / INR
| Resistance 2 | 73.79 | ( 7 Day Moving Average ) |
| Resistance 1 | 73.40 | ( Bollinger Band ) |
| Current Level | 73.11 / 12 | |
| Support 1 | 73.00 | ( Big Figure ) |
| Support 2 | 72.53 | ( 18 Month Moving Average ) |
EQUITY
Asian shares notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China’s service sector augured well for continued recovery there.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5% to reach its highest since March 2018, extending a 2.8% gain last week. Chinese blue chips firmed 0.7% to reach levels not seen since mid-2015. Surveys showed Chinese manufacturing activity edged back a tick to 51.0 in July, but services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand.
| Symbol | Last | Change | Change % |
| SGX Nifty | 11,757.00 | 74.90 | 0.64% |
| Dow 30 | 28,653.90 | 161.60 | 0.57% |
| S&P 500 | 3,508.01 | 23.46 | 0.67% |
| Nasdaq 100 | 11,995.90 | 69.69 | 0.58% |
| FTSE 100 | 965.00 | -7.00 | -0.72% |
OIL
Oil prices nudged up on Monday, with Brent futures set to post a fifth straight monthly gain, as global stimulus measures underpin prices even as demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November climbed 27 cents, or 0.6%, to $46.08 a barrel while U.S. West Texas Intermediate crude was at $43.11 a barrel, up 14 cents, or 0.3%. Brent is set to close out August with a fifth successive monthly price rise, having peaked at $46.23 a barrel on Aug. 5, the highest level since March. WTI is on track for a fourth monthly rise, reaching $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
MAJOR ECONOMIC EVENTS AS ON 31 AUGUST 2010
| Time | Country | Event | Forecast | Previous |
| 17:30 | INR | GDP Quarterly (YoY) (Q1) | -18.3% | 3.1% |
| 17:30 | EUR | German CPI (MoM) (Aug) | -0.2% | -0.5% |
