- Dollar softer as sentiment recovers on vaccine hopes and deals
- Asian shares set to dip as investors await key data
- India August Wholesale Price Index rises to 0.16% as food items, manufactured goods get costlier
- Oil inches lower as bleaker demand outlook weighs
Major Currency Rates at 9:04 AM
The dollar dipped against riskier currencies on Tuesday as hopes for a COVID-19 vaccine and big corporate deals improved investor appetite for assets such as the yuan and the euro.
The dollar index dipped to 93.029, slipping further from a one-month high of 93.664 touched last Wednesday, with its low last week of 92.695 seen as an immediate support.
Indian Inflation Rises
Wholesale Price Index (WPI) for August 2020 rose to 0.16 percent after being in the negative zone for four straight months. A jump in prices of food items and manufactured goods led to the rise in August.
July WPI was at -0.58 percent. WPI inflation in June was at -1.81 percent, while for the month of May and April it was -3.37 percent and -1.57 percent, respectively. The annual rate of inflation, based on monthly WPI, stood at 0.16 percent (provisional) for the month of August 2020, as compared to 1.17 percent during the corresponding month of the previous year
USD / INR TECHNICAL LEVELS BASED ON DAILY CHART
Yesterday Dollar INR pair was in a narrow range of 73.25 to 73.60 . It took support of the trend line (Support 1) and could not break the first resistance of 73.68 as suggested in yesterdays report . Today it is expected to open around 73.37.
|Resistance 2||74.28||( 50 Day Moving Average )|
|Resistance 1||73.67||( 18 Day Moving Average )|
|Current Level||73.35 / 73.36|
|Support 1||73.00||( Big Figure )|
|Support 2||72.53||( Bollinger Band )|
Asian shares looked set to open lower on Tuesday as investors shifted focus to upcoming data and central bank meetings although positive developments around potential COVID-19 vaccines and increased deal activity are likely to stem losses.
Australia’s S&P/ASX 200 futures were down 0.22% and Hong Kong’s Hang Seng index futures lost 0.08%. Japan’s Nikkei 225 futures were flat after Chief Cabinet Secretary Yoshihide Suga won a ruling party leadership election, paving the way for him to succeed Prime Minister Shinzo Abe. E-mini futures for the S&P 500 gained 0.11%.
|Dow Jones Industrial Average||27,993.33||327.69||1.18%|
|Nasdaq Composite Index||11,056.65||203.11||1.87%|
|NYSE Composite Index||12,932.69||159.65||1.25%|
|S & P 500 Index||3,383.54||42.57||1.27%|
|FTSE 100 Index||6,026.25||-5.84||-0.10%|
Oil prices inched lower on Tuesday as a bleaker outlook for global fuel demand prompted fresh selling, but short-covering ahead of a meeting later this week of OPEC and its allies, known as OPEC+, limited losses.
Brent crude was down 3 cents, or 0.1%, at $39.58 a barrel, reversing earlier gains. U.S. West Texas Intermediate (WTI) crude futures were down 2 cents, or 0.1%, at $37.24 a barrel.
Major oil industry producers and traders are forecasting a bleak future for worldwide fuel demand, due to the coronavirus pandemic’s ongoing assault on the global economy, with OPEC downgrading its oil demand forecast on Monday and BP citing demand might have peaked in 2019.
MAJOR ECONOMIC EVENTS FOR Monday, 14 September 2020
|11:30||GBP||Average Earnings Index +Bonus (Jul)||-1.3%||-1.2%|
|11:30||GBP||Claimant Count Change (Aug)||100.0K||94.4K|
|11:30||GBP||Unemployment Rate (Jul)||4.1%||3.9%|
|14:30||EUR||German ZEW Current Conditions (Sep)||-72.0||-81.3|
|14:30||EUR||German ZEW Economic Sentiment (Sep)||69.8||71.5|
|14:30||EUR||Wages in euro zone (YoY) (Q2)||3.40%|
|18:00||USD||Export Price Index (MoM) (Aug)||0.4%||0.8%|
|18:00||USD||Import Price Index (MoM) (Aug)||0.5%||0.7%|
|18:00||USD||NY Empire State Manufacturing Index (Sep)||6.00||3.70|
|18:45||USD||Industrial Production (MoM) (Aug)||1.0%||3.0%|
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.