6 April 2022
World Market – Headlines
Following comments from a Fed policymaker, the dollar has risen to a two-year high.
Following the Fed’s hawkish comments, Asian markets have fallen and bond yields have risen.
Oil’s losses are widening as the dollar strengthens and the stock market in the United States expands.
USD/INR Spot (75.50): Yesterday USD/INR opened at 75.55 then came down immediately due to exporters selling and corporate bond dollars inflows. The pair came down to 75.32 areas and closed at the same level. EUR/USD is trading broadly lower (1.0892) after the FED hawkish rate hike signal, faster balance sheet reduction program, European Union announcement of the ban of Russia coals, access to EU ports, and transaction banks of four key Russian banks. As per a CNBC report yesterday the Indian government is also likely to launch the much-awaited LIC IPO in early May 2022 this year.
Technically USD/INR intraday resistance is near 75.65 areas and rises above this level indicating short covering towards the 75.75-80 zone.
The range for the day: 75.30 to 75.75
On Wednesday, the dollar rose to its highest level in nearly two years after rising overnight on fresh hawkish remarks from a Federal Reserve member, while the euro was harmed by the threat of new Western sanctions against Russia.
In early trade, the dollar index, which compares the greenback to six other currencies, rose 0.15 percent to 99.620, its highest level since May 2020.
On Wednesday, the euro fell to$1.0894, its lowest level in over a month.
The gains in the dollar were widespread. It climbed 0.27 percent against the Japanese yen to 123.94, its best level in a week, and is closing in on March’s near-seven-year high of 125.1.
The pound was trading at $1.30655, close to its lowest level since November 2020. The Australian dollar was steady at $0.7578, near Tuesday’s nine-month high after the Reserve Bank of Australia signaled higher interest rates were on the way.
Around $45,000, Bitcoin was slightly lower.
The Indian stock market is projected to open in the red, with the broader index in India gapping down with a loss of 93 points, according to SGX Nifty trends.
On the daily charts, the BSE Sensex was down 435 points at 60,176, while the Nifty50 went below the important 18,000 mark, correcting 96 points to close at 17,957 and forming a bearish candle.
The pivot charts show that the Nifty’s important support level is 17,887, followed by 17,818. The major resistance levels to watch if the index rises are 18,061 and 18,165.
On Wednesday, Asian stock markets fell as investors worried about the likelihood of aggressive monetary tightening by the United States Federal Reserve to combat inflation, as well as new Western penalties against Russia for its invasion of Ukraine.
Japan’s Nikkei sank 1.5 percent in early Asian trade, while South Korean stocks slid 0.8 percent and Australian stocks fell 1.2 percent.
At $1,917.92 per ounce, spot gold was down 0.3 percent.
The Hang Seng index in Hong Kong fell 1.71 percent. Stocks on mainland of China fell when they resumed trading after a week of vacation. Shanghai’s composite fell 0.38 percent, while Shenzhen’s component fell 0.36 percent.
In Australia, the S&P/ASX 200 index fell 0.77 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 1.18 percent.
Oil futures fell on Wednesday, extending losses from the previous day, as a stronger US dollar triggered additional selling, while data suggesting an increase in US crude stocks and Shanghai’s extended lockdown fueled concerns about sluggish demand.
Brent oil futures were down 97 cents, or 0.9 percent, to $105.67 a barrel, while WTI futures were down 98 cents, or 1.0 percent, to $100.98 a barrel. On Tuesday, Brent dipped 0.8 percent, while WTI slid 1.3 percent.
Despite persistent supply issues, oil prices decreased due to mounting currency pressure and growing worry that new coronavirus cases could restrict demand.
At $101.13 a barrel, US crude was down 0.8 percent. Brent crude was trading at $105.89 a barrel, down 0.7 percent.
Wednesday, 6 April 2022
Construction PMI (Mar)
ECB’s Panetta Speaks
Crude Oil Inventories
FOMC Meeting Minutes
Anushree Saxena (Intern)
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.