Open: London Session | Forex, Metals, Oil, Agriculture February 23, 2021



Dollar indexSince the dollar weakened, the dollar index declined yesterday and slipped below the support of 90.35, where the 50-day moving average coincides. less After posting a gain of one-fifth of a per cent on Monday, the rupee (INR) has opened with a gap-up on Tuesday today against the dollar (USD). The Japanese yen, which has been the worst performing major currency of 2021 because it is sensitive to tumbling US Treasury prices, steadied at 105.02 per dollar.
This means a weak dollar and dollar depreciation can be positive for the rupee. But it has opened on the strong foot and the dollar index hinting at a decline in the greenback. Oil extended its recent rally, helped by a weakening dollar, amid various predictions of further strength to come. The US dollar index sat at 90.019 on Tuesday, just above its lowest since mid-January. The Australian dollar last bought $0.7913 and the kiwi $0.7323, with both trading broadly steady early in the Asia session.


Rising crude oil prices that could impact the macros and inflation and rising 10-year G-Sec yields were the key local factors that shook the equity markets. “Stockpiles of US crude oil and refined products likely declined last week, a preliminary Reuters poll showed on Monday,due to the disruption in Texas. US crude rose 81 cents, or 1.4 per cent, to $62.51 a barrel, after hitting a session high of $62.73.

United States

However, volatility is likely to hurt investors’ sentiment, as mixed signals emerge from Asia-Pacific markets and from the US markets overnight. The Nasdaq 100 has notched up its longest losing streak in four months and Bitcoin is tumbling amid lingering doubts over the sustainability of the cryptocurrency’s parabolic rally. The sharp slide in Nasdaq may keep Indian IT stocks under pressure. There are plenty of risks…and the US economy is long, long way from full employment.'”
The Nasdaq 100 s forward P/E spread to the S&P 500 is stalling at around a 7-point premium after hitting its widest since early 2008.


We must therefore uphold tight restrictions, EU leaders will say on Thursday, according to the latest draft of their joint statement that ministers will discuss today. On the call s agenda is a discussion about a European Democracy Action plan proposed by the Commission ahead of the next EU elections. Fresh Sanctions | The EU is set to sanction Russian officials over the jailing of Alexey Navalny, a step that marks a new low in relations with Russia.