The markets in the U.S. will be closed on Monday in observance of the President's Day holiday. Foreign financial markets are open Monday and currency markets are expected to remain open for trading.
Global stocks started the new week on a positive note supported by a strong Q4 earnings report and prospects of additional fiscal stimulus in the US. On Friday, President Biden appealed to a bipartisan group of local officials for their support in passing his proposed $1.9 trillion stimulus package.
Crude oil prices climbed to a fresh year high on Monday lifted by the rising tensions between the Iran-backed Houthis rebels and Saudi Arabia.
In the currency market, the EURO trading steady above 1.2130 on Monday. The key data for Euro for this week will once again be the FOMC as we get the latest minutes from their most recent meeting, German ZEW Economic Sentiment on Tuesday and Eurozone manufacturing & services PMI Figures on Friday.
The safe-haven edged lower on Monday as a slowdown in the rate of coronavirus infections, and risk appetite improved. The metal also faced bearish pressure after the benchmark US Treasury yields soared to an almost 11-month high on Friday.
This week the main highlights of the economic calendar will be the retail sales data from the US, UK and Australia, FOMC and RBA meeting minutes and inflation data from the UK.
The other main attraction for this week Investors waiting for Wal-Mart earnings report. The world's biggest retailer will announce its holiday season results on Thursday.
Worldwide, the number of COVID-19 cases reported is more than 108.6 million. The United States has confirmed over 27.5 million cases and has had more than 484,000 deaths from COVID-19, the highest totals in the world.
GBP/USD: The Pound enjoying the upside rally. The price crossed 1.3900 resistance level on Monday European session. The next important level to watch 1.3920 and 1.3940.
The important levels to watch for today: Support- 1.3860 and 1.3830 Resistance- 1.3920 and 1.3950.
GOLD: The yellow metal trading weaker below $1820 supported by $1800. Today, gold is again expected face resistance around $1,832 along with the support around $1806 and $1800.
The important levels to watch for today: Support- 1806 and 1798 Resistance- 1826 and 1832.
Quote of the day: If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money – Bill Lipschutz.