US dollar retreated back to below the psychological 90 level on Wednesday and the Index struggling to find the upside momentum. During the last week, the greenback recovered from nearly three-year low and closed higher. While considering the recent downside move the USD may find again strong buyers below the 90 area. Moving to the North American session, the investors should keep an eye on the new updates about additional U.S. fiscal stimulus and US inflation data.
Wall Street closed higher on Tuesday supported by the recent victory of Democrats in the Georgia election have raised the hopes for a massive fiscal stimulus package. Meanwhile, the Chinese stocks trading mixed after China reported the biggest daily jump in coronavirus cases for more than five months.
Crude oil prices surged to near the 11-month high on Wednesday, as expectations of a coronavirus vaccine fuelled the hopes of a faster-than-expected economic recovery. On the other hand, the API reported a larger than expected drop in US oil inventories.
In the currency market, the British pound rallied following the comments from the Bank of England’s governor Andrew Bailey. He said the negative interest rates would be a simple way to boost growth. Meanwhile, Bailey warned that the UK was facing its darkest hour amid surging covid cases and tighter lockdown restrictions.
The yellow metal closed slightly higher on Tuesday boosted by the optimism about another big fiscal stimulus and the weaker dollar.
On the data front, the US JOLTS Job Openings for November came it at 6.53M, which was up compared to the predicted 6.42M.
On Tuesday, the president of the Boston Federal Reserve Bank, Eric Rosengren, said on Tuesday, “The pandemic is likely to continue to be a problem for public health and the economy until widespread vaccinations take hold,” “Low-interest rates should continue to support the housing market and the labor market could see strong gains over the next two years”, he added.
Worldwide, more than 91 million people have been confirmed infected and more than 1.9 million have died. The U.S. has the highest death count of any country in the world, at 376,295, according to Johns Hopkins University. In the UK, the latest figures showed that a further 1,243 people had died within 28 days of testing positive for Covid-19 as of Tuesday, which brings the total to 81,960.
EUR/USD: The currency pair slightly retreated from the previous session highs ahead of Eurozone Industrial production data. On the downside, 1.2170 and 1.2130 will be the crucial levels to watch.
The important levels to watch for today: Support- 1.2170 and 1.2130 Resistance- 1.2220 and 1.2250.
GOLD: The precious metal trading unchanged on Wednesday. The important levels to watch today $1865 and $1838.
The important levels to watch for today: Support- 1846 and 1832 Resistance- 1865 and 1870.
Quote of the day: Understanding how to be a good investor makes you a better business manager and vice versa – Charlie Munger.