The Euro broke further above the psychological level of 1.2300 and climbed to a fresh session high of 1.2340 on Wednesday. The recent bullish move lifted by the weaker dollar and better-than-expected economic data from Eurozone and Germany.
On Tuesday, Wall Street ended slightly higher boosted by the oil and gas stocks. The Dow Jones Industrial Average increased 0.6%, the tech-heavy Nasdaq Composite gained 1% and the S&P 500 added 0.7%. While during the European session on Wednesday the US stock futures trading lower as the traders and investors await the results of two runoff elections in Georgia.
Crude oil price climbed to the highest level since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers.
In the currency market, the commodity currencies leading the gains supported by higher oil and gold prices. Meanwhile, the dollar index fell to a weekly low of 89.20 during the European session.
Gold price trading steady above $1950, during the Asian session the yellow metal climbed to a fresh weekly high of $1955 supported by the weaker dollar.
On the data front, US ISM Manufacturing PMI increased In December- the PMI climbed to 60.7 in December after dipping to 57.5 in November, with a reading above 50 indicating growth.
Moving ahead today, the important events to watch:
US – ADP employment report: GMT – 13.15
US – Crude oil inventories: GMT – 15.30
US –FOMC meeting minutes: GMT – 19.00
Worldwide coronavirus deaths have reached 1,875,467 with more than 86.8 million reported cases. The United States has reported 20.8 million confirmed cases and has had more than 354,000 deaths from COVID-19, the highest totals in the world. On the positive side, the European Medicines Agency’s is expected to approve Moderna's covid-19 vaccine today which will be the second vaccine to be used in Europe.
Dollar Index: The USD sell-off continues on Wednesday ahead of ADP employment report and FOMC meeting minutes. At the time of writing, the index trading below 89.30.
The important levels to watch for today: Support- 89 and 88.60 Resistance- 90.40 and 90.90.
GOLD: The precious metal upside rally continues. The important levels to watch today $1960 and $1940.
The important levels to watch for today: Support- 1932 and 1926 Resistance- 1940 and 1932.
Quote of the day: Trading decisions should be made as unemotionally as possible – Richard Dennis.