Good Morning!

The S&P 500 along with Nasdaq edged lower last Friday in the U.S. due to ongoing concerns about rising interest rates and tensions over trade policy hitting economic growth.
Asian equities fell anew today as investors braced for the peak of the US earnings season while anxiety over Saudi Arabia, Italy and Brexit kept geopolitics front and center.
Oil prices edged up today, as markets are expected to tighten once U.S. sanctions against Iran's crude exports are implemented next month.
The Euro and the British pound slipped against the dollar today as investors await developments around Brexit as well as Italy's budget plan which drew heavy criticism from the European Union last week. The Dollar Index haven’t had a major move yet but is hovering close to the critical 96 handle.
The Indian Unit too is seen opening almost flat against the Dollar and is expected to swing between 73.30-73.80 today.

Regards
Karvy Forex

Good Morning!

US President Trump said he is immediately sending the secretary of State Mike Pompeo to Saudi Arabia to meet with King Salman to discuss the disappearance of Saudi activist Jamal Khashoggi. Meanwhile, Saudi Arabia has issued a furious response to US saying it would immediately retaliate with the equal amount of sanctions if US tries to impose sanctions over the kingdom. The kingdom also warned that Oil prices could go as high as $200 if US attempts to threaten. Brent Crude was seen trading at $81 this morning. Pound recovered overnight as UK PM May said “we are entering the final stages of Brexit Negotiations”; vis-à-vis comments from European Council President Donald Tusk that a “No-Deal” Brexit is more likely than ever before. US Equities ended flat followed by a similar start in Asian Equities. Indian trade deficit narrowed to a five-month low at $13.98 billion in September, exports declined by a moderate of 2.15% but, a slowdown in imports restricted the deficit. Indian Rupee is likely to neat 73.75 and is expected to trade between 73.50 - 74.20 for the day. 

Regards,
Karvy Forex
www.karvyforex.com

Good Morning!

Wall Street ended slightly lower yesterday as investors, worried about global growth prospects, fled from materials and industrials stocks. The decline was limited and the U.S. indices borrowed support from the falling treasury yields that have put the Dollar under pressure. The Dollar slipped further from seven-week highs today while sterling saw a little relief on hopes Britain and the European Union might be close to a Brexit deal.
Asian equities steadied in early trade today after global stocks hit eight-week lows the yesterday on worries about global economic growth.
The Oil prices edged lower today after the IMF’s lower global growth forecasts but prices found support as Hurricane Michael churned toward Florida, causing the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude output.
The Indian unit is seen opening a little strong around 74.15 a dollar but is expected to remain volatile for the day playing the 73.85-74.45 range for the day.

Regards
Karvy Forex

Good morning!

Asian markets trades lower early Monday as China’s markets prepare to reopen following a week-long holiday after its central bank cut banks’ reserve requirements in a bid to support growth, while Oil prices corrected from highs as US considers some waivers on Iran crude sanctions. US equities ended lower on Fridays on back mixed US data. Meanwhile, US 10 year yields rose to 3. 23% hits a fresh 7 year highs.  

Dollar index traded higher, moves are limited by a lack of liquidity with Japan on holiday and the U.S. bond market on a break while pound inched higher

Dollar rupee likely to open near 74.05 after last day volatile move and expected to trade in a broader range of 73.65-74.25 for the day

Regards

Karvy Forex 

The Wall Street stocks lost their foot yesterday as U.S. Treasury yields continued to rise to multi-year highs as an outcome of the recent strong economic data,
building concerns for an acceleration of inflation.
Asian equities were shaky and further look perilous as the risk of faster-than-expected interest rate hikes in the U.S. persists.
Oil prices rose today, as we move closer to the U.S. sanctions against Iran's crude exports that are set to start next month.
The Indian Central bank is due to come out with its interest rate decision, where it is expected to raise the rates by 25 bps.
The Dollar continued to hold gains today against its major peers, including the yen and euro, as investors evaluated the impact of a two-day global government
bond retreat that has lifted U.S. Treasury yields.
The Indian Unit is seen opening around 73.70 a dollar and is expected to play the 73.30-74.40 range today with a bearish bias.

Good Morning!

At least 800 people are confirmed to have died in Indonesia and the death toll is expected to rise sharply after the magnitude of 7.5 earthquake hit the country on Friday.
Brent Crude oil prices are trading at a four year high boosted by the looming sanctions against Iran.
Foreign Portfolio Investors have withdrawn more than over INR 21,000 Cr during the month of September from local Equity and Debt markets, the highest in last four months.
China is expected to cut import tariffs on textile and metals to promote the balanced development of foreign trade and promote a high level of opening up to the outside world.
shares of Tesla lost around 14% after US regulators sued CEO Elon Musk in a fraud complaint that seeks to remove him as CEO. US Equities ended flat on Friday pulled by news of Tesla and Facebook.
Asian Equities were seen trading mixed this morning and SGX Nifty is also indicating a flat start to the local bourses. Indian Rupee is likely to open near 72.70 a dollar and is expected to trade between 72.45 – 72.95 range for the day

Good Morning!

U.S. Federal Reserve Chairman says the U.S. does not face a large chance of near-term recession. The news of robust economic growth boosted gains on Wall Street. The wave passed on to the Asian equities today pushing the shares higher.
Oil prices inched up on Friday, with investors trying to gauge the potential impact on supply from looming U.S. sanctions on Iran's crude exports.
The Euro witnessed an around 0.9% fall yesterday largely due to increased Italian political jitters as the anti-establishment parties agreed on a budget proposal that is at odds with Eurozone fiscal rules. The situations seems to worsen for Euro as The Fed has just raised rates to a range of 2.00 – 2.25 percent while the ECB is only just preparing to exit its asset purchase program potentially by the end of this year.
The Dollar Index as a result of this and with strong economic data in U.S. managed to test the 95 mark yesterday.
The Indian Unit, yet again found support at 73 a dollar offshore and recovered a little where it is seen opening today near 72.60. However, it continues to be under pressure even after the governments measures to curb imports. All thanks to the dollar strength globally. Expect the Rupee to play the 72.40-72.90 range with a negative bias.

Regards
Karvy Forex

Good Morning!

Fed raises interest rates by 25bp to range of 2-2.25%. 2018 GDP forecast raised. Drops “accommodative” from FOMC statement.
US equities lost the momentum late yesterday, while the US dollar rose, after the Federal Reserve raised interest rates, as expected, and signalled the end of its "accommodative" monetary policy.
Global equities cooled off and US bond yields fell after the Federal Reserve raised interest rates as expected, sticking to its script of gradual policy tightening with forecasts of five more rate hikes by 2020.
Oil prices rose by 1 percent today as investors focused on the prospect of tighter markets due to U.S. sanctions against major crude exporter Iran, which are set to be implemented in November.
The dollar edged higher yesterday in choppy trading after the Fed’s rate decision. The upsurge was mainly a result of indications of more rate hikes going forward and signals of the end of the "accommodative" policy era.
The Indian Unit however is seen opening stronger at 72.40 a dollar, as the Govt. announces measures (Increase in import duty) to curb Current Account Deficit; and is expected to swing between 72.20-72.70 for the day.

• US indices cooled off yesterday after a new round of US-China trade tariffs kicked in that reduced last week's hopes for talks between the two countries. Expectations on further rate hike from the Fed also killed further prospects for US equities.
• Asian stocks struggled today as the latest round of US-China tariffs revived fears the trade dispute would knock global growth.

• Crude oil prices extended further near four-year highs after Saudi Arabia and Russia ruled out immediate production increases. U.S. sanctions against Iran also loom.

• The Dollar was largely steady against its major peers this morning as investors looked to policy clues from the U.S. Federal Reserve, but against the Indian Unit it is seen appreciating further where it is set to open near 73 today and is expected to maintain strength throughout the day to further move up to 73.30.

Good Morning!

Anxiety about a major escalation in the US-China trade conflict and the turmoil in emerging markets have led to a fragile investor confidence in global equities as well as in Asia where the stocks are down for the sixth straight day today. Nasdaq dipped for more than a percent as Facebook & Twitter executives defended their companies before skeptical U.S. lawmakers.
Oil Prices inch lower after API reports a minor draw of 1.17 million barrels of inventory for the week ending September 1.
The dollar index moved lower after a sharp bounce in Pound as news of UK and Germany were prepared to drop key Brexit demands. Albeit, news driven volatility pulled the dollar lower, the dollar index is likely to stay tall.
The Indian Unit hit 72 a dollar but quickly retreated after a suspected RBI intervention and mild profit booking at psychological level. Rupee is expected to play the 71.40-71.80 range for the day.

Regards
Karvy Forex

Good Morning!


President Donald Trump issued a new threat to terminate NAFTA agreement altogether, he also warned Congress not to intervene in tough negotiations that may or may not include Canada in a new accord. In another news Prime Minister Theresa May said she would not allow compromises to her Brexit strategy that went against the national interest, seeking to allay fears among some in her Conservative Party that she will cave into Brussels’ demands in negotiations. The EU chief Brexit negotiator Michel Barnier has said he is strongly opposed to key parts of Theresa May’s proposals for a future trade deal. European markets were pulled down by more than a percent followed by comments of policymakers over Brexit negotiations. Crude prices trading marginally lower amid rising supply from OPEC and US, but holding to its previous gains supported by the expectations of falling Iranian output once US sanctions bite output from November. Asian Equities were seen trading lower and SGX Nifty is indicating a positive start in the local bourses. Indian Rupee is likely to open near 70.80 a dollar and is likely to trade between 70.50 to 71.00 range for the day.

Regards,
Karvy Forex.
www.karvyforex.com