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DAILY MARKET REPORT

Germany's GDP contracted by 10.1% in the second quarter of 2020, weaker-than-expected compared to the market expectations of a 9.0% contraction. "This was the sharpest decline since the quarterly GDP calculations for Germany began in 1970,"

DAILY MARKET REPORT

Germany's GDP contracted by 10.1% in the second quarter of 2020, weaker-than-expected compared to the market expectations of a 9.0% contraction. "This was the sharpest decline since the quarterly GDP calculations for Germany began in 1970," the statistics office said. Meanwhile, the German Unemployment Rate unchanged at 6.4% for the current month and the Unemployment Change decreased by 18K. Moving ahead to the North American session, the US will release the last quarter GDP numbers. The world’s largest economy is expected to see its GDP contract about -34% in the last quarter versus -5% prior.

EQUITIES

European stocks and DAX trading near the session low after the data showed on Thursday disappointing German GDP numbers and mixed employment data. During the Asian session, the Japanese stocks ended 1.1% lower, amid weak earnings by several big-cap companies.

OIL

Crude oil price trading lowers on Thursday, amid fears over a resurgence in coronavirus infections across the globe that could slow recovery in fuel demand.

CURRENCIES

The dollar index recovered from the previous session losses after the Federal Reserve signalled support for the economy. While the commodity currencies like the Australian dollar and New Zealand dollar trades near the week low On Thursday.  

GOLD

Gold price slightly retreated from the all-time high, at the time of writing the precious metal trading below $1960.

Economic Outlook

On Wednesday, after two days of meeting the Federal Open Market Committee reiterated plans to keep interest rates near zero until the economy sees further improvement. The Fed Chairman Powell hinted that the economy would need additional support measures to cope with the outbreak of the economic crisis. “The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in keeping the virus in check,” Powell said.

Moving ahead today, the important events to watch:

US Initial weekly Jobless claims – 12.30 GMT

US Second-Quarter GDP – 12.30 GMT

The important earnings to watch today: Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Gilead Sciences (NASDAQ: GILD).

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 17 million, of which at least 667 thousand people have, according to data released by the Johns Hopkins University.  

Technical Outlook

XAU/USD: The yellow metal price dropped almost 25$ after the price found double top near the all-time high of $1980.

audusd

The important levels to watch for today: Support- 1940 and 1920   Resistance- 1980 and 1995.

GBP/USD: The currency pair trading below the psychological level 1.30, during the previous session the pair traded above 1.30 after the Fed statement.

euraud

The important levels to watch for today: Support- 1.2940 and 1.29 Resistance- 1.13010 and 1.3040.

Quote of the day: Only buy something that you would be perfectly happy to hold if the market shut down for 10 years - 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.