“If you can’t fly then run if you can’t run then walk if you can’t walk then crawl, but whatever you do you have to keep moving forward” – Martin Luther King Jr.
US stock and bond markets will remain closed on Monday in observation of the Martin Luther King Jr holiday.
Wall Street ended lower on Friday after mixed fourth-quarter earnings data from Big banks. Moving ahead, this week the investors and traders will keep their eyes on Q4 earnings. Goldman Sachs, IBM, Netflix, and United Airlines all scheduled to report quarterly earnings this week.
Crude oil prices trading lower on Monday due to global demand concerns and amid fears about the continued rise in fresh coronavirus infections.
In the currency market, The EURO and kiwi being the notable losers. The Japanese yen remain in favor as global equities slightly weaken while the dollar hit its strongest in two weeks against the EURO.
The yellow metal started this week on a bearish note ahead of US President-elect Joe Biden is due to be inaugurated on Wednesday and the metal also faced pressure from a strong dollar.
On the data front, China’s fourth-quarter GDP grew 6.5% year-on-year, accelerating from 4.9% growth in the previous quarter. The Industrial production jumped an annual 7.3% in December, beating forecasts for 6.9% while retail sales fell below the previous reading of 5.0% and the 5.5% market consensus.
This week the main highlights of the economic calendar will be the ECB, BOJ, BOC central bank meetings, UK retail sales and CPI data, Manufacturing PMI data from Eurozone, Germany, UK, and the US.
Worldwide, the number of COVID-19 cases reported is more than 95 million. The United States has reported 23.8 million confirmed cases and has had more than 396,000 deaths from COVID-19, the highest totals in the world. On the positive side, the UK reported 38,598 new coronavirus cases on Sunday, which is the lowest number since December 27.
EUR/USD: The currency pair trading at new session lows. Overall, the trends still look bearish and the next immediate support at 1.2050 and 1.20.
The important levels to watch for today: Support- 1.2050 and 1.20 Resistance- 1.2120 and 1.2180.
GOLD: The yellow metal plunged on Monday morning to the key support area $1800 but the sellers lost the momentum. The metal rebounded back to above $1830.
The important levels to watch for today: Support- 1826 and 1816 Resistance- 1842 and 1854.
Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich