February Eurozone retail sales reported stronger than expected. The sales rose 3.0% percent after a 5.2 percent slump in January and compared with market expectations of 1.5 percent growth. The EURUSD bounced back above 1.1900 following the strong retail sales data.
US stock futures and European shares started the new week on a positive note boosted by strong macro-economic data and the positive comments from Fed Chair Jerome Powell. "We feel like we're at a place where the economy's about to start growing much more quickly and job creation coming in much more quickly," Powell said.
Crude oil prices recovered from the early session losses. This week the investors continue to follow the oil inventory report from the API and EIA and the US inflation data.
In the currency market, the British pound rebounded after in the UK the pubs, gyms, and all reopening from Monday in some capacity. While the US dollar Index bearish momentum continues for the second consecutive week.
Gold price trading steady above $1740 on Monday. On Friday, the safe-haven metal retreated from the fresh monthly high after better-than-expected US PPI data and the strong rebound in US Treasury yields.
This week the main highlights of the economic calendar will be the release of the US banks earnings, Inflation data from the US, Germany, and Eurozone and the RBNZ interest rate decision.
Worldwide, more than 136.1 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31 million cases and has had more than 562,000 deaths from COVID-19, the highest totals in the world. Meanwhile, Covid cases continue to fall in the UK with 1730 new daily cases on Sunday, down 25% from the previous week
GBP/USD: The British pound once again found strong buyers near the previous week low 1.3670. At the time of writing, the currency pair trades above 1.3760.
The important levels to watch for today: Support- 1.3710 and 1.3670 Resistance- 1.3780 and 1.3810.
GOLD: The yellow metal trading below the short-term resistance level $1745 supported by $1730. Today, gold is again expected to face resistance around $1750 along with support around $1730 and $1720.
The important levels to watch for today: Support- 1735 and 1730 Resistance- 1745 and 1750.
Quote of the day: “In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.” – Low Simpson.