- Dollar steady as Fed meets
- India’s August exports fall, imports contract and trade deficit narrows
- Asian stocks set for mixed session as investors await Fed
- Oil gains as hurricane shuts U.S. output, stockpiles fall
Major Currency Rates at 8:45 AM
Global equities markets rallied on Tuesday, first on upbeat Chinese data and later on an increase in U.S. factory output, while the dollar see-sawed on uncertainty regarding the Federal Reserve’s outlook on the economy when policymakers meet this week.
Investors drove longer-term U.S. Treasury yields higher, steepening the closely watched yield curve, as the Fed began a two-day meeting. U.S. factory production increased for a fourth straight month in August despite signs of strain in the recovery, while U.S. import prices rose more than expected, supporting the view that inflation pressures were building.
The Fed’ last Federal Open Market Committee meeting adopted on a new approach to inflation, voting to allow its pace to run above average for longer to ensure the recovery is not snuffed out just when the economy begins to roll.
The People’s Bank of China (PBOC) set the yuan reference rate at 6.7825 versus Tuesday’s fix at 6.8222.
Indian Export Import Data
Contracting for the sixth straight month, India’s exports slipped 12.66 percent to $22.7 billion in August, on account of decline in the shipments of petroleum, leather, engineering goods and gems and jewellery items, according to the government data released on September 15.
The country’s imports too declined 26 percent to $29.47 billion in August, leaving a trade deficit of $6.77 billion, compared to a shortfall of $13.86 billion in the same month last year,
USD / INR TECHNICAL LEVELS BASED ON DAILY CHART
Yesterday Dollar INR pair was in a range of 73.31 to 73.73 . It took support of the trend line (Support 1) at 73.30 where RBI was seen purchasing dollars. Also there was outflow of unsubscribed portion of IPO but it could not sustain above the first resistance of 73.68 as suggested in yesterdays report . Today it is expected to open around 73.60.
|Resistance 2||74.28||( 50 Day Moving Average )|
( 18 Day Moving Average )
|Current Level||73.60 / 73.61|
|Support 1||73.34||( Trendline )|
|Support 2||73.00||( Big Figure )|
Asian shares were set for a mixed open on Wednesday as investors awaited the Federal Reserve’s view on the economy at the end of its policy meeting, although upbeat Chinese and U.S. economic data is likely to give sentiment a tailwind.
Australian S&P/ASX 200 futures rose 0.75% in early trading. Japan’s Nikkei 225 futures slid 0.13%.Hong Kong’s Hang Seng index futures rose 0.33%.E-mini futures for the S&P 500 slipped 0.01%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.65% higher on Tuesday.
|Dow Jones Industrial Average||27,995.60||2.27||0.01%|
|Nasdaq Composite Index||11,190.32||133.67||1.21%|
|NYSE Composite Index||12,967.18||34.49||0.27%|
|S & P 500 Index||3,401.20||17.66||0.52%|
|FTSE 100 Index||6,105.54||79.29||1.32%|
Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted U.S. offshore oil and gas production and an industry report showed a big drop in U.S. crude stockpiles.
Brent crude was trading up 15 cents, or 0.4%, at $40.68 a barrel by while U.S. crude gained 18 cents, or 0.5%, to $38.46 a barrel. Both contracts rose by more than 2% on Tuesday.More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast.
MAJOR ECONOMIC EVENTS FOR Wednesday, 16 September 2020
|11:30||GBP||CPI (YoY) (Aug)||0.1%||1.0%|
|11:30||GBP||PPI Input (MoM) (Aug)||0.3%||1.8%|
|14:30||EUR||Trade Balance (Jul)||12.6B||21.2B|
|18:00||USD||Core Retail Sales (MoM) (Aug)||0.9%||1.9%|
|18:00||USD||Retail Sales (MoM) (Aug)||1.0%||1.2%|
|19:30||USD||Business Inventories (MoM) (Jul)||0.1%||-1.1%|
|19:30||USD||Retail Inventories Ex Auto (Jul)||0.6%|
|20:00||USD||Crude Oil Inventories||2.049M||2.032M|
|20:00||USD||Cushing Crude Oil Inventories||1.838M|
|23:30||USD||Fed Interest Rate Decision||0.25%||0.25%|
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.