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DAILY MARKET REPORT

It a big day for the US dollar and the Dollar index sitting near to key support level of $93.50. The traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement.

DAILY MARKET REPORT

It a big day for the US dollar and the Dollar index sitting near to key support level of $93.50. The traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement.

EQUITIES

On Tuesday, Wall Street ended lower after some large US companies reported weaker-than-expected earnings including McDonald's (NYSE: MCD), VISA (NYSE: V), and eBay (NASDAQ: EBAY). While Pfizer (NYSE: PFE) shares closed 3% up after the company reported better-than-expected Q2 earnings.

OIL

Crude oil price trading higher on Wednesday supported by API data. The data showed in the US the crude inventories unexpectedly fell by 6.8 million barrels from previous 7.544 million.

CURRENCIES

The dollar index struggling to find the upside momentum ahead of FOMC decision. On Tuesday, the Index slightly recovered from the previous session losses but failed to break above 94 levels. At the writing, the pair trading below the previous support of 93.50. Meanwhile, the Australian dollar surged to a fresh year high of 0.7190 during the European session.

GOLD

The gold price hovers near to the all-time high on Wednesday ahead of US central bank interest rate decision and statement.

Economic Outlook

On the data front, Spain retail sales rebounded to -4.7% in June from 18.9% slump in the previous month. While Consumer prices in Australia dropped by 0.3% in Q2 2020, slightly below the market expectation of a 0.4% fall and after a 2.2% rise in Q1.

Moving ahead today, the important events to watch:

US Pending home sales report – 14.00 GMT

US crude oil inventories– 14.30 GMT

US FOMC Interest rate decision – 18.00 GMT

US FOMC Press Conference – 18.30 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 16.7 million, of which at least 660 thousand people have, according to data released by the Johns Hopkins University. The US accounted for the world's highest number of infections and fatalities at 4,287,974 and 148,009, respectively. The coronavirus pandemic "continues to accelerate," with a doubling of cases over the last six weeks, the World Health Organization chief said.

Technical Outlook

XAU/USD: Gold price climbed back to above $1950. On Tuesday, the yellow metal price dropped to near $1900 after surged to an all-time high of $1980.

audusd

The important levels to watch for today: Support- 1920 and 1900   Resistance- 1980 and 1995.

EUR/USD: The currency pair trading in a range between 1.1700 to 1.1770 ahead of FED meeting after the pair climbed to near 2-year high of 1.1780 on Monday.

cruse

The important levels to watch for today: Support- 1.1710 and 1.1670 Resistance- 1.1780 and 1.1810.

Quote of the day: Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected – George Soros.

 

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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.