Gold price climbed to fresh weekly highs of $1870 on Tuesday lifted by optimism over a new US coronavirus fiscal relief bill. On the other hand, Japanese Prime Minister Yoshihide Suga announced a fresh $708 billion economic stimulus package on Tuesday.
Asian shares traded lower as investors’ worries on rising tension between Washington and Beijing after the US is set to impose sanctions on more than a dozen of Chinese officials who allegedly took part in the disqualification of opposition lawmakers in Hong Kong.
Crude oil prices trading lower on Tuesday as coronavirus cases continue to surge across Europe and the US. Moving ahead to the North American session, the Investors now await the weekly API report on US crude oil stockpiles due later in the day.
In the currency market, the British pound trading extra volatile as the post-Brexit drama continues. On Monday, a joint statement released after the phone conversation between UK PM Boris Johnson and with European Commission President Ursula von der Leyen. "We agreed that the conditions for finalizing an agreement are not there due to the remaining significant differences on three critical issues: level playing field, governance, and fisheries," the statement said.
Gold prices slightly retreated from the daily highs. Overall, the momentum remains mixed as the investors looking for fresh updates on a pandemic relief package.
On the data front, Japan's economy grew an annualised 22.9 year on year from the initial estimate of 21.4%. On a quarterly basis, GDP increased by 5.0%, revised upwardly from the 4.7% drop in the preliminary report.
On the coronavirus Vaccine front, the first doses of the vaccine — developed by American drugmaker Pfizer and Germany’s BioNTech — are set to be administered in the U.K. starting Tuesday in England, Scotland, Wales, and Northern Ireland. Meanwhile, Russia has granted approval for clinical trials to be held for the Chinese COVID-19 vaccine Ad5-Ncov.
Worldwide, more than 67.2 million people have been confirmed infected and more than 1.53 million have died, according to Johns Hopkins University. Cases of the novel coronavirus in the United States have surpassed 15.3 million with more than 290,000 deaths.
EUR/USD: The currency pair trading unchanged following better-than-expected German and Eurozone economic data.
The important levels to watch for today: Support- 1.2080 and 1.2040 Resistance- 1.2140 and 1.2180.
Dollar Index: The US dollar slightly recovered from the lowest level in over 2 years. At the time of writing, the pair hovers near 90.80 zones.
The important levels to watch for today: Support- 90.60 and 90.40 Resistance- 91 and 91.50.
Quote of the day: An investor’s worst enemy is not the stock market but his own emotions.