25 March 2022
World Market – Headlines
The yen is in free fall for the third week in a row.
As world leaders press Russia, Wall Street pushes stocks higher and oil lower.
According to MUFG, an increase in oil prices could lead to a drop in demand.
Currency
Indian Rupee
The Indian rupee is projected to strengthen against the US dollar as crude oil prices and the dollar index fall somewhat.
The rupee is expected to open around 76.28-76.30, down from 76.37 the day before. After falling every day this week until yesterday, the euro seems poised for a slight rise. The rupee has been trading in a narrow range of 76 to 76.50 this week, owing to rising oil prices and hawkish statements from US Federal Reserve officials.
Other Currencies
On Friday, the yen was expected to have its worst week in two years, weighed down by growing import costs and low-interest rates in Japan, while commodity currencies were set to gain for the second week in a row against the dollar as export prices remained high.
Concerns that the situation in Ukraine could harm Europe’s economy by boosting energy and food costs have pushed the euro lower this week, pinning it at $1.1005.
The Australian dollar was recently trading at $0.7508, barely below a four-month high of $0.7527.
The yen, on the other hand, is weakening and has lost 2.6 percent against the dollar this week. It has broken through the psychological 120-per-dollar barrier and is now trading at 122.44, with a big resistance level of 123.70 in sight.
Though it has run into firm resistance just shy of $0.70, the New Zealand dollar was last seen at $0.6964.
Sterling is hovering around $1.3190 as traders evaluate the Bank of England’s moderately dovish stance against February inflation data that was stronger than expected.
Equity
Indian Equity
The Indian stock market is projected to open in the green, with a gain of 88 points on the SGX Nifty, indicating a bullish start for the broader index in India.
The BSE Sensex declined 89 points to 57,596, while the Nifty50 dropped 23 points to 17,223 on the daily charts, although the closing was higher than the opening levels, forming a positive candle.
The pivot charts show that the Nifty’s main support level is 17,112, followed by 17,001. The important resistance levels to watch if the index rises are 17,313 and 17,402.
Other Markets
After bumpy trading overseas on Thursday, U.S. equities soared and oil prices fell as investors watched Western leaders show a united face against Russia’s invasion of Ukraine.
After a big drop the previous day, technology companies boosted U.S. stock indices, with the tech-heavy Nasdaq Composite rising 269.24 points, or over 2%, to 14,191.84.
The Dow Jones Industrial Average increased by 349.44 points, or approximately 1%, to 34,707.94, while the S&P 500 increased by 63.92 points, or 1.43 percent, to 4,520.16.
The pan-European STOXX Europe 600 index fell 0.2 percent, while MSCI’s main world stocks index climbed 0.71 percent despite the absence of Russian companies.
The dollar index increased by 0.15 percent, while the euro dropped by 0.05 percent to $1.099.
Oil
According to an analysis by Mitsubishi UFJ Financial Group (MUFG), rising Brent crude oil prices are following the same path as in 2007-08 when they reached a record $150 per barrel before demand destruction kicked in and prices fell in a worldwide recession.
Brent crude hit $113.02 on Wednesday, the highest level since June 2014, as supply disruption fears grew following the imposition of harsh penalties on Russian banks in response to the escalating war in Ukraine.
Following a more than 5% gain on Wednesday, U.S. crude slid 3.13 percent to $111.33 per barrel, while Brent was trading at $118.01, down over 3% for the day.
Economic Events
Economic Calander | ||||
Friday, 25 March 2022 | ||||
Time | Currency | Event | Forecast | Previous |
12:30 | GBP | Retail Sales (MoM) (Feb) | 0.60% | 1.90% |
14:30 | EUR | German Ifo Business Climate Index (Mar) | 94.20% | 98.90% |
15:30 | EUR | EU Leaders Summit |
|
|
19:30 | USD | Pending Home Sales (MoM) (Feb) | 1.00% | -5.70% |
Prepared by
Anushree Saxena (Intern)
[convertkit form=3104091]
[email-subscribers-form id=”2″]
[convertkit_content tag=”2998537″][/convertkit_content]
Disclaimer: All information in this report is collected from various sites on the internet. Although we have taken all precautions for the correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s own views. We are not responsible for any losses on account of following the same.
Sources
