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DAILY MARKET REPORT

It is a busy week ahead for both the US Dollar and the Euro. Both Eurozone and US will publish their second-quarter GDP numbers on Thursday. EUR/USD started the week on positive note supported by a weaker US dollar and during the European session, the pair retreated to below 1.1700 from the daily high of 1.1725.

DAILY MARKET REPORT

It is a busy week ahead for both the US Dollar and the Euro. Both Eurozone and US will publish their second-quarter GDP numbers on Thursday. EUR/USD started the week on positive note supported by a weaker US dollar and during the European session, the pair retreated to below 1.1700 from the daily high of 1.1725.

EQUITIES

Global stocks trading mixed on Monday as Investors fears about rising tensions between the U.S. and China and surging coronavirus cases. Last week Wall Street closed lower, the Dow Jones declined 0.7% and the S&P 500 lost 0.2%. This week the investors and traders will closely monitor big US giants’ quarterly earnings results including FAANG group of companies and Starbucks, Pfizer, Boeing, Visa and Mastercard etc.

OIL

Crude oil price trading slightly lower on Monday after OPEC+ confirmed it would reduce the size of its output cuts to 7.7 million barrels a day from August 1st, which would add nearly 2 million barrels to daily production levels.

CURRENCIES

The dollar index trading near to 2- year low on Monday ahead of Fed's monetary policy decision on Wednesday. Meantime the commodity currencies the Australian dollar and New Zealand dollar failed to break the previous week highs of 0.7180 and 0.6690.

GOLD

Gold prices surged to a fresh all-time high of $1944 on Monday during the Asian session boosted by a large-scale decline in USD and escalating tensions between the US and China after Beijing ordered Washington to shut its Chengdu consulate.

Economic Outlook

On the data front, The IFO Business Climate indicator for Germany rose by 4.2 points from the previous month to a five-month high of 90.5 in July 2020, beating market expectations 89.3. “The German economy is recovering step by step,” IFO President Clemens Fuest said in a statement.

On Sunday, the US Biotech company Moderna said it has received an additional $472 million (€404.94 million) from the US government to support the development of its COVID-19 vaccine.

Coronavirus update:

The world has now seen over 16 million coronavirus cases with over 644,000 lives lost to COVID-19, according to the US-based Johns Hopkins University. The United States has become the worst-affected country, with more than 4.2 million diagnosed cases and at least 146,788 deaths. On Monday China reported 61 new COVID-19 cases, the highest number of coronavirus cases in three months. 

 

Technical Outlook

XAU/USD: The yellow metal trading steady above $1940 on Monday supported by $1900 psychological level.

audusd

The important levels to watch for today: Support- 1935 and 1920   Resistance- 1944 and 1953.

EUR/USD: The currency pair approaches to overbought zone after hitting a fresh year high of 1.1725.

cruse

The important levels to watch for today: Support- 1.1660 and 1.1630 Resistance- 1.1730 and 1.1770.

Quote of the day: Stick to your investment strategy - do not turn temporary declines to permanent losses - Warren Buffet     

 

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DAILY MARKET REPORT

DAILY MARKET REPORT

The US nonfarm payrolls report is the main highlight of today’s economic calendar, the NFP report due at 12:30 GMT today. The market is expecting 1,580K new jobs, down on the previous month's 4,800K which takes the unemployment rate to an expected 10.5%.

DAILY MARKET REPORT

DAILY MARKET REPORT

The Bank of England kept interest rates at 0.1% and to keep its asset purchasing facility at £745bn for August. The Central bank said the unemployment will jump, with the rate at 7.5% at the end of 2020, before gradually declining from the start of next year and inflation is expected to fall further below the 2% target.

DAILY MARKET REPORT

DAILY MARKET REPORT

The gold price hit an all-time high of $2038 on Wednesday during the European session. The recent upside rally supported by a weaker dollar, escalating tensions between the US and China and a large explosion in the Lebanese capital, Beirut. The safe-haven metal surged more than 30% this year boosted by lower interest rates and rising coronavirus cases.

DAILY MARKET REPORT

DAILY MARKET REPORT

The Nasdaq climbed to a record high on Monday boosted by hopes for a fresh US fiscal stimulus package and tech shares rally. The Nasdaq Composite surged more than 1.5% to 10,902.80, beating its previous record high close on July 20. Microsoft jumped 5.6% on Monday after it confirmed that it is in talks to buy the US arm of TikTok. The Trump administration gave the company 45 days to make a deal before TikTok's US operations could be banned.