UK Gross domestic product expanded 6.6% in July from June; the data published by the Office for National Statistics showed Friday. While the numbers came in slightly lower than the 6.7% expected by analysts, and significantly lower than the 8.7% growth seen in June. On the other hand, Industrial production in the United Kingdom surged 5.2% in July of 2020, marking the third straight month of growth after a record plunge in April and beating the market forecast of 4%.
“Education grew strongly as some children returned to school, while pubs, campsites and hairdressers all saw notable improvements. Car sales exceeded pre-crisis levels for the first time with showrooms having a particularly busy time,” said ONS director of economic statistics Darren Morgan.
Global stocks and US stock futures trading in negative territory on Friday after U.S. Senate Republicans failed to advance a new coronavirus stimulus bill.
Crude oil prices trading lower on Friday following the latest EIA data showed that US oil inventories rose by 2.03 million barrels in the week to September 4th, the first weekly rise in seven weeks
In the currency market, the British pound plunged after the EU threatened to pursue legal action against the UK over breach of the Brexit withdrawal agreement if it does not drop the so-called Internal Market Bill.
The gold price hovers near the support $1940 area ahead of US inflation data which is set to be released at 12:30 GMT.
On Thursday, ECB left interest rates unchanged as expected and kept the bond-buying program intact. The central bank sees the Eurozone economy to shrink 8% in 2020, less than earlier estimates of an 8.7% contraction. ECB president Christine Lagarde said the ECB is closely monitoring the impact of the exchange rate on inflation risks within the region.
On the data front, US Labor Department released the latest Initial Jobless Claims figures which remained at the same level of 884K, which turned out to be worse than the market's expectations, which expected a decrease to 846K.
The number of people infected with the coronavirus across the world surpassed 28.1 million, of which at least 909 thousand people have died and 18.9 million have recovered, according to data released by the Johns Hopkins University. The United States is the leading country in terms of confirmed novel coronavirus cases (6 395 603), followed by India (4 465 863) and Brazil (4 197 889).
XAU/USD: Gold price retreated from the previous session high, on Thursday, during the North American session the yellow metal climbed to $1965.
The important levels to watch for today: Support- 1926 and 1910 Resistance- 1955 and 1965.
EUR/USD: The currency pair slightly rebounded from the early session lows, at the time of writing the pair trading above 1.1840.
The important levels to watch for today: Support- 1.1800 and 1.1770 Resistance- 1.1880 and 1.1915.
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.