World Markets
Forex Insights
USD/INR Spot reference {76.57}:
The rupee pared initial losses to settle 4 paise higher at 76.53 against the US dollar on Thursday, tracking positive domestic equities. the rupee opened at 76.60 against the greenback and moved in a range of 76.43 to 76.71 in the day trade. It finally closed at 76.53, registering a rise of just 4 paise over its previous close of 76.57.
Broad Market Snapshot:
The U.S. dollar touched a two-decade high against rivals on Thursday, as Wall Street rallied and European shares rose from six-week lows with strong earnings reports offsetting gloomy U.S. economic data.
The yen dropped to a 20-year low after the Bank of Japan vowed to buy unlimited amounts of 10-year bonds daily to defend its yield target. The bank’s strengthening of its commitment to ultra-low interest rates sent the U.S. dollar to a fresh high, weakened emerging market currencies and pushed borrowing costs for U.S. dollars in currency derivatives markets sharply higher
The euro hit a five-year low against the dollar of $1.04695 before paring losses. It was still on track for its worst monthly performance since January 2015.The weaker yen and euro pushed the dollar index to 103.930 , its highest level since December 2002.
Dollar Rupee Today
Dollar rupee opened flat at 76.57 although it was showing 76.70 in offshore market. It looks like that the Reserve Bank is not comfortable with Dollar rate above 76.70 and is trying to cool down . This may be due to rising oil prices globally which will have inflationary effect if Dollar Rupee also starts moving up.
We expect it to remain in the range of 76.30 to 76.70 today
Equity Insights
Indian Equity
SGX Nifty indicates a positive start for the Indian indices The Nifty futures were trading higher around 17,306 level on the Singaporean Exchange at 8:35 IST
Bulls staged a strong comeback on April 28, the last of the F&O contracts for the April series, after a day of one percent loss. Positive global cues and buying by FIIs lifted sentiment.
The BSE Sensex surged 702 points or 1.23 percent to 57,521, while the Nifty50 jumped 207 points or 1.21 percent to 17,245 and formed a small-bodied bullish candle on the daily charts.
“With the Thursday’s close, the index has broken out its past 15 sessions’ “Down-Sloping Trend line” resistance at 17,100 levels. The daily price action has formed a bullish candle carrying either side shadows representing volatility,
Crucial support zones are placed around 17,000-16,800 levels. Hence the short-term traders are advised to continue long positions with 17,000-16,800 as stop-loss, on the upside, the index is expected to rebound towards 17,500-17,800 levels in the coming sessions.
Other Equity
Asian shares clung on to small gains on Friday thanks to a solid Wall Street session, but were still set for their worst month in two years, as China growth fears and looming U.S. rate hikes dragged on sentiment and sent the safe-haven dollar soaring.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% on Friday, after robust earnings from Facebook parent Meta Platforms had driven the Nasdaq 3% higher overnight.
Japanese markets are closed for a holiday.
Overall sentiment was still fragile with Nasdaq futures off around 1% in early Asia trade, pressured by disappointing earnings from Amazon after market close.
Friday’s gains were marginal compared to the brutal sell-offs in globally stocks in recent weeks. The Asian regional benchmark is heading for a 2% decline this week and a 7.3% drop for the month, its worst month since March 2020.
Shanghai stocks rose 0.2% on Friday, but are set for an 8.1% fall for the month, their worst since January 2016.
Commodity Insights
OIL
Oil edged lower on Friday as China’s COVID-19 lockdowns weighed on the outlook for crude demand, although supply disruption fears as Western sanctions curb crude and products exports from Russia underpinned prices.
Brent crude futures dipped 4 cents to $107.55 a barrel after rising 2.1% in the previous session. The front-month June contract expires later on Friday. The more active July contract fell 30 cents to $106.96 a barrel.
U.S. West Texas Intermediate crude dropped 49 cents, or 0.5%, to $104.87 a barrel after settling 3.3% higher on Thursday.
Economic Events
Economic Calendar | ||||
Friday, Apr 29, 2022 | ||||
Time | Country | Event | Forecast | Previous |
13:30 | EUR | German GDP (QoQ) (Q1) | 0.10% | -0.30% |
14:30 | EUR | CPI (YoY) (Apr) | 7.50% | 7.40% |
16:00 | RUB | Interest Rate Decision (Apr) | 15.00% | 17.00% |
18:00 | CAD | GDP (MoM) (Feb) | 0.80% | 0.20% |
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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.
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