The Euro climbed to a fresh session high of 1.1895 on Monday against the US dollar. The US dollar remained under pressure amid hopes for a large fiscal stimulus package to prop up the US economy after Joe Biden’s victory in the US presidential election. Meanwhile, President Donald Trump does not recognize the results of the vote and is determined to challenge them in court.
Global stocks and US futures started the week on a positive note as the market participants are expecting the Biden's win will lead to fewer regulatory changes and additional monetary stimulus.
Crude oil prices rebounded from the Friday session lows. At the time of writing, both WTI and Brent futures trading near to the previous week highs.
In the currency market, the New Zealand dollar surged to a fresh year high of 0.6815 against the US dollar ahead of RBNZ interest rate decision on Wednesday.
The gold price trading higher supported by the weaker dollar and a resurgence in virus cases in Europe and some US states.
On the data front, Germany’s exports surpassed expectations, with +2.3% in September vs. +1.4% expected while the current account surplus in Germany increased to EUR 26.3 billion in September of 2020 from EUR 23.5 billion a year earlier.
This week the main highlights of the economic calendar will be the release of RBNZ interest rate decision, UK employment and GDP data, US Consumer Price Index and Producer price index figures.
Worldwide, the number of COVID-19 cases reported is more than 50.1 million, with over 32.8 million being declared recovered, according to Johns Hopkins University. The United States saw a record number of new coronavirus infections last week, with the total number of cases nearing 10 million.
EUR/USD: The currency pair trading steady above 1.1850 boosted by stronger-than-expected German economic data and the weaker dollar.
The important levels to watch for today: Support- 1.1840 and 1.1800 Resistance- 1.1900 and 1.1940.
GOLD: The yellow metal slightly retreated from the daily highs. At the time of writing, the gold price trading below $1960.
The important levels to watch for today: Support- 1950 and 1935 Resistance- 1965 and 1975.
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