- Dollar gains as Fed sticks to agenda of near-zero rates
- Fed pledges to keep interest rates near zero for years
- Asian shares set for mostly weaker open after Fed
- Oil up more than 4% as U.S. stockpiles fall, hurricane hits output
Major Currency Rates at 9:24 AM
Global equities slid and the dollar firmed on Wednesday after the Federal Reserve pledged to hold interest rates near zero until at least 2023 and keep its bond-buying program in place to stimulate the U.S. economy as part of a dovish policy stance.
Longer-term U.S. Treasury yields and gold prices edged higher after the Fed promised to keep rates on hold until inflation is on track to “moderately exceed” the U.S. central bank’s 2% inflation target “for some time.”
The People’s Bank of China (PBOC) has set the yuan reference rate at 6.7675 on Thursday, having raised the mid-point rate by 397 basis points to 6.7825 on Wednesday.
US Interest Rate Policy
The Federal funds rate remained unchanged at zero to a quarter percentage point, and will stay there until America’s labor market has recovered “consistent with the Committee’s assessments of maximum employment” and the inflation rate has risen to 2%, and is on track to exceed that level for some time.
USD / INR Technical levels based on Daily Chart
Yesterday Dollar INR pair was in a range of 73.47 to 73.77 . It opened at 73.60 and buying was seen in initial trading and it tested the first resistance range of 73.69-74 but could not sustain above the resistance of 73.74 as suggested in yesterdays report . The pair got sold off till 73.47 near RBI fixing time and it closed at 73.53. Today it is expected to open around 73.53 .
|Resistance 2||74.25||( 50 Day Moving Average )|
|Resistance 1||73.66||(Bollinger Band) ( 18 Day Moving Average )|
|Current Level||73.53 / 73.54|
|Support 1||73.37||( Trendline )|
|Support 2||73.00||( Big Figure )|
Asian shares were set to drift lower on Thursday as concerns about the strength of the recovery from the COVID-19 pandemic remained, even after the U.S. Federal Reserve pledged to hold interest rates near zero until at least 2023.
Australian S&P/ASX 200 futures lost 0.22% in early trading. Japan’s Nikkei 225 futures were flat, while Hong Kong’s Hang Seng index futures lost 0.15%. E-mini futures for the S&P 500 rose 0.47%
|Dow Jones Industrial Average||28,032.38||+36.78||+0.13%|
|Nasdaq Composite Index||11,050.47||-139.86||-1.25%|
|NYSE Composite Index||12,997.86||+30.68||+0.24%|
|S & P 500 Index||3,385.49||-15.71||-0.46%|
|FTSE 100 Index||6,078.48||-27.06||-0.44%|
Oil prices jumped more than 4% on Wednesday, following a drawdown in U.S. crude and gasoline inventories and as Hurricane Sally forced a swath of U.S. offshore production to shut.
Brent crude settled at $42.22 a barrel, up $1.69, or 4.2%. U.S. crude finished $1.88, or 4.9%.at $40.16 a barrel.
U.S. crude stocks fell 4.4 million barrels last week to 496 million barrels, their lowest since April, the U.S. Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 1.3 million-barrel rise
Major Economic Events for 17 September 2020
|10:00||JPY||BoJ Monetary Policy Statement|
|12:30||JPY||BoJ Press Conference|
|14:30||EUR||Core CPI (YoY) (Aug)||0.4%||0.4%|
|14:30||EUR||CPI (YoY) (Aug)||-0.2%||-0.2%|
|14:30||EUR||CPI (MoM) (Aug)||-0.4%||-0.4%|
|16:30||GBP||BoE QE Total (Sep)||725B||725B|
|16:30||GBP||BoE Interest Rate Decision (Sep)||0.10%||0.10%|
|16:30||GBP||BoE MPC Meeting Minutes|
|18:00||USD||Building Permits (Aug)||1.520M||1.483M|
|18:00||USD||Building Permits (MoM) (Aug)||17.9%|
|18:00||USD||Housing Starts (MoM) (Aug)||22.6%|
|18:00||USD||Housing Starts (Aug)||1.478M||1.496M|
|18:00||USD||Initial Jobless Claims||850K||884K|
Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.