8 April 2022
World Market – Headlines
The dollar is rising to a new two-year high and is on track to have its best week in four years.
After Wall Street’s comeback, Asia-Pacific markets are generally down.
Oil is expected to drop 3% this week due to the release of emergency supplies.
Currency
Indian Rupee
USD/INR Spot (75.94): Yesterday, the USD/INR opened at 75.90, up from the previous day’s closing of 75.7550. After the market opened, the pair progressively rose to 75.99, where selling began. The pair fell to 75.7850, but continued dollar demand below 75.80, weak domestic equity, and broad dollar strength brought the pair back up to 75.96, near the day’s high.
As investors digested hawkish Fed minutes, US equities markets rallied and closed higher, while US 10-year bond rates (CMP: 2.64 percent) hit a three-year high following the FED’s hawkish signal. Everyone will be watching the Reserve Bank of India’s monetary policy statement today. To stimulate growth, the RBI is likely to maintain the current interest rate. The RBI has avoided any meaningful monetary tightening in the aftermath of the pandemic in order to foster growth, but they may eventually have to choose between inflation or growth.
Intraday resistance for the USD/INR is at 75.0450 and 76.1450. Staying below the 74.0450 resistance zone suggests the likelihood of a return to today’s short-term support level of 75.77. The next level of support would be around 75.65. To imply a further up move towards 76.1450 levels, it must rise over 76.0450.
75.6500 to 76.1450 is the day’s range.
Other Currencies
The dollar pushed higher on Friday, hitting a fresh near-two-year high against a basket of peers and a one-month high against the euro, boosted by expectations of a faster pace of Federal Reserve interest rate hikes.
In early Asia trade, the dollar index climbed to 99.904, its highest level since May 2020.
In early trading on Friday, the euro fell to a fresh one-month low of$1.0856, weighed down by additional Western sanctions on Russia, with the European Union pushing toward a ban on Russian coal slated to take effect in August.
The dollar rose to a high of 124.23 against the Japanese yen, its strongest level in almost a week and testing last month’s near seven-year high of 125.1.
The yen has stabilized this month after plunging in March, but it is still under pressure as the United States raises interest rates and the Bank of Japan intervenes in the bond market to keep rates low.
At $1.30695, sterling was at the bottom end of its current range.
Bitcoin was trading around $43,300 in cryptocurrency markets, just above its two-week low of $42,742.
Equity
Indian Equity
The market is projected to open flat, with a rise of 12 points on the SGX Nifty, indicating a cautious start for the broader index in India.
The BSE Sensex sank 575 points to 59,035, continuing the decline for the third consecutive day, while the Nifty50 dropped 168 points to 17,639, forming a bearish candle on the daily charts.
The pivot charts show that the Nifty’s important support level is 17,580, followed by 17,520. The important resistance levels to watch for if the index rises are 17,743 and 17,847.
Other Markets
Following a recovery on Wall Street, Asia-Pacific stocks gave up early gains to generally slump on Friday as investors digested the Fed’s efforts to combat inflation.
The Nikkei 225 index fell 0.18 percent, while the Topix index fell 0.28 percent.
The Hang Seng index in Hong Kong sank 0.17 percent, while the Hang Seng Tech index fell 1.14 percent.
Mainland Markets in China were mixed. Shanghai’s composite rose 0.34 percent, while Shenzhen’s component fell 0.31 percent.
The Kospi fell 0.23 percent, while the Kosdaq was down 0.16 percent in South Korea.
The S&P/ASX 200 index in Australia increased 0.62 percent.
After falling as much as 300 points earlier in the day, the Dow Jones Industrial Average rose 87.06 points, or 0.25 percent, to 34,583.57. Following two days of losses, the S&P 500 rose 0.43 percent to 4,500.21, while the Nasdaq Composite rose 0.06 percent to 13,897.30.
Oil
Oil prices rose slightly on Friday but were projected to drop roughly 3% for the week after consuming countries agreed to release 240 million barrels of oil from emergency reserves to help overcome Russian supply disruptions.
Brent crude prices increased 13 cents, or 0.1 percent, to $100.71 a barrel, while WTI crude futures rose 35 cents, or 0.4 percent, to $96.38 a barrel in the United States.
Early in Asia, U.S. crude futures were up 0.61 percent to $96.62 per barrel, while international benchmark Brent crude futures were up 0.50 percent to $101.08 per barrel.
Economic Events
Economic Calendar | ||||
Friday, Apr 08, 2022 | ||||
Time | Country | Event | Forecast | Previous |
10:00 | INR | Interest Rate Decision | 4.00% | 4.00% |
16:45 | EUR | ECB’s Panetta Speaks |
|
|
18:00 | CAD | Employment Change (Mar) | 80.0K | 336.6K |
22:30 | USD | U.S. Baker Hughes Oil Rig Count |
| 531 |
Prepared by
Anushree Saxena(Intern)
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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
