21 April 2022
World Market – Headlines
As finance ministers gather, the dollar rises after a brief dip amid caution.
Shares in Asia-Pacific are neutral as investors keep an eye on Covid in China and the yen’s movements.
Oil continues to rise, but in a narrow range, it takes a break.
Currency
Indian Rupee
USD/INR Spot reference {76.20}: Yesterday, USD/INR had a gap down starting at 76.3950 against the previous day’s close of 76.5050.
After the market opened, the pair temporarily fell to 76.3200 levels, where buying began. Following the fix, oil firms continued to buy the dollar, pushing the pair to a high of 76.5200 areas. The pair bounced both ways throughout the day, and in the final hour of trading, aggressive selling pulled the pair to 76.17 levels before finishing at 76.21 levels.
Intraday resistance near 76.30 may act as a ceiling for a longer-term decline towards 76.0950 and eventually 76.01 levels. If the price stays above 76.30, buyers will flock to the next resistance level of 76.4275. Yesterday’s price action has shifted the daily chart’s momentum bearish, and a daily close below 75.95 suggests a possible additional down to 75.77 and perhaps 75.4550.
For the day, the range is 76.00 to 76.4275.
Other Currencies
The dollar rose slightly on Thursday, boosted by predictions of aggressive Federal Reserve monetary tightening, but it remained considerably below its previous day’s highs amid concerns about what a meeting of finance ministers could say about the currency’s rapid rise.
The dollar rose 0.36 percent to 128.335 yen after hitting a two-decade high of 129.430 on Wednesday as the Bank of Japan (BOJ) intervened in the bond market for the third time in three months to preserve its zero-rate target, contrasting sharply with the Federal Reserve’s increasingly hawkish stance.
The dollar index, which compares the greenback to six other currencies, including the yen, rose 0.11 percent to100.45, after falling from a more than two-year high of 101.03 in the previous session.
The euro fell 0.11 percent to $1.08425, while the British pound fell 0.14 percent to $1.30555.
The Australian dollar is now trading at $0.7436, down 0.20 percent.
Consumer pricing data that was less than expected weighed on the New Zealand dollar, which fell 0.40 percent to $0.67755.
Equity
Indian Equity
The Indian stock market is projected to open in the green, with SGX Nifty trends indicating a 109-point gap-up opening for the broader index in India.
On the daily charts, the BSE Sensex rose 574 points to 57,037, while the Nifty50 rose 178 points to 17,136, forming a Bullish Harami candlestick pattern, indicating a trend reversal.
According to pivot charts, the Nifty’s main support level is 17,015, followed by 16,893. The important resistance levels to watch if the index rises are 17,223 and 17,309.
Other Markets
Investors are keeping a close eye on China’s Covid crisis, as well as movements in the Japanese yen, in Thursday morning trade.
In early trading, Chinese stocks dipped, with the Shanghai composite losing 0.3 percent and the Shenzhen component losing 0.12 percent. The Hang Seng index in Hong Kong fell 0.3 percent.
As the mainland grapples with its most severe Covid outbreak since the initial breakout in 2020, investors are looking for signals of policy support from Chinese authorities. China’s tight zero-Covid policy has sparked concerns about the country’s economic prospects.
In Japan, the Nikkei 225 index rose 1.14 percent, while the Topix index rose 0.63 percent. The Kospi index in South Korea increased by 0.61 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks remained below the flatline.
Overnight, Wall Street stocks were mixed. The Dow Jones Industrial Average rose 249.59 points to 35,160.79, up 0.71 percent. The S&P 500 fell a smidgeon to 4,459.45, while the tech-heavy Nasdaq Composite fell 1.22 percent to 13,453.07.
OIL
After being shaken earlier in the week by supply losses from Libya and a dismal prognosis for demand as the International Monetary Fund lowered its global growth estimates, oil prices moved upward but in a limited range on Thursday.
Brent crude futures increased 55 cents, or 0.5 percent, to $107.35 per barrel, recouping earlier session losses.
WTI crude futures in the United States rose 41 cents, or 0.4 percent, to 102.60 a barrel, following a 19-cent gain the previous session.
Economic Events
Economic Calendar | ||||
Thursday, Apr 21, 2022 | ||||
Time | Country | Event | Forecast | Previous |
14:30 | EUR | CPI (YoY) (Mar) | 7.50% | 5.90% |
18:00 | USD | Initial Jobless Claims | 180K | 185K |
18:00 | USD | Philadelphia Fed Manufacturing Index (Apr) | 21 | 27.4 |
20:30 | USD | Fed Chair Powell Speaks |
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22:00 | GBP | BoE Gov Bailey Speaks |
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22:30 | EUR | ECB President Lagarde Speaks |
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22:30 | USD | Fed Chair Powell Speaks |
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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
