Crude Oil prices slipped to a 3-week low on Monday due to global demand concerns and amid fears about a resurgence in coronavirus cases. On the other hand, the recent bearish momentum fuelled by the resumption of Libya’s oil exports after the Libyan National Army announced an end to an eight-month oil blockade. The U.S. West Texas Intermediate dropped to near $38.30 on Monday, its lowest since October 5.
Asian stocks trading lower following the overnight sell-off on Wall Street after the lack of progress in the next round of the US stimulus measures and the rising number of coronavirus cases. On Monday, the Dow Jones Industrial Average lost 2.3%, the S&P 500 dropped 1.9%, and the Nasdaq Composite fell 1.6%. SAP shares plunged more than 30% after the company warned its business would take longer than expected to recover from the pandemic.
Crude oil prices slightly rebounded from the previous session lows as Investors now await the weekly API report on US crude oil stockpiles due later in the day.
In the currency market, the US Dollar index rebounded from last week's lows and hovers near 93 areas boosted by the lack of progress in stimulus negotiations.
The gold price remains under pressure on Tuesday. Moving ahead to the North American session, the gold traders and investors will closely watch the release of the US Durable Goods Orders data.
On the data front, the New Home Sales figures from the US for September showed a drop to 959K, against the projected 1,025K and the previous 994K, according to a report released by the Commerce Department on Monday.
On the next US stimulus package front, a spokesman of US House of Representatives Speaker Nancy Pelosi said on Monday she was hopeful that Democrats and the Trump administration would reach an agreement on a coronavirus relief bill before the Nov. 3 elections.
Worldwide, more than 43.2 million people have been confirmed infected and more than 1.15 million have died, according to Johns Hopkins University. The U.S. has reported more than 8.6 million cases and 225,500 deaths, according to Johns Hopkins University data. India reports 36,470 new cases in the last 24 hours, the lowest daily count in more than three months, bringing the national total to 7.95 million.
EUR/USD: The currency pair extends slide to a fresh weekly low of 1.1795 during the European session. The next downside levels to watch 1.1780 and 1.1760 for today.
The important levels to watch for today: Support- 1.1780 and 1.1760 Resistance- 1.1840 and 1.1880.
GOLD: The yellow metal trading in a range between $1930 and 1895 from the last two weeks. At the time of writing, the gold price trading below $1900. Overall, the momentum remained bearish throughout today.
The important levels to watch for today: Support- 1900 and 1890 Resistance- 1914 and 1920.
Quote of the day: In the short run, a market is a voting machine, but in the long run it is a weighing machine – Benjamin Graham.