The Federal Statistics Office released the disappointing German retail sales data on Monday. The data showed the retail sales in Germany plunged 9.6% December of 2020 due to the stricter restrictions and lockdown measures, compared to a 2.6% drop in November. Meanwhile, German manufacturing PMI reported slightly better-than-expected.
Global equity markets struggling to find the upside momentum following the last week sell-off. During the previous week, the US indices posted their worst week since October.
Crude oil price slightly rebounded from previous session lows. Last week oil price ended lower over escalating concerns about weakening demand due to the slow pace of vaccination in the euro area.
In the currency market, the Euro dropped to a new session low against the US dollar and the British pound after weaker-than-expected German retail sales data.
The gold price trading steady above $1860 during the European session. Overall, the momentum remains bullish throughout today. While Silver price climbed more than 10% on Monday.
On the data front, the Caixin manufacturing Purchasing Managers' Index fell to 51.5 in January from 53.0 in December, the lowest level since September 2020.
This week the main highlights of the economic calendar will be the RBA and BOE central bank meeting, US employment and manufacturing data, Eurozone GDP, and employment data.
As per the recent update, the German government has threatened legal action against laboratories failing to deliver coronavirus vaccines to the European Union on schedule. "If it turns out that companies have not respected their obligations, we will have to decide the legal consequences," Economy Minister Peter Altmaier said.
Moving ahead today, the important events to watch:
Eurozone: Unemployment rate – 10.00 GMT
US: ISM manufacturing PMI – 15.00 GMT
Worldwide, the number of COVID-19 cases reported is more than 102.6 million. The United States has confirmed over 26 million cases and has had more than 439,000 deaths from COVID-19, the highest totals in the world. The US has ordered travellers to wear masks on most public transport.
EUR/USD: The currency pair slightly recovered from the early session losses supported by better-than-expected PMI numbers from Eurozone and Germany.
The important levels to watch for today: Support- 1.2070 and 1.2030 Resistance- 1.2140 and 1.2180.
GOLD: The precious metal currently trading at $1864. On the upper side, the immediate resistance to watch $1872/1876.
The important levels to watch for today: Support- 1856 and 1848 Resistance- 1874 and 1890.
Quote of the day: One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It’s your window into a very large world- Ron Chernow.