Brazil has the world's second-highest number of confirmed coronavirus infections, behind only the United States. As of Sunday, the country had reported more than 347,000 cases of COVID-19 and at least 22,000 deaths. The number of confirmed cases of coronavirus around the world surpassed 5 million, of which more than 340 thousand died and over 2 million recovered. In the US, the number of infections surpassed 1.6 million. India reported the highest ever spike of 6977 COVID-19 cases and 154 deaths in the last 24 hours. The total number of cases in the country is 1, 38,845 and 4021 have died, the ministry said on Monday.
U.S. markets are closed Monday for the Memorial Day holiday. Japan’s Nikkei jumped 1.5% after the Nikkei newspaper reported the country was considering a fresh stimulus package worth over $929 billion. Hong Kong shares extending losses on mounting fears about future stability in the city. Hong Kong’s Hang Seng equity market fell 5.6% on Friday, its biggest one-day fall since 2015, as market participants braced for renewed protests in the city.
Oil prices rose on Monday, erasing earlier losses, as countries around the world continued to ease lockdown measures imposed to combat the coronavirus pandemic, boosting hopes for a recovery in fuel demand. This week the traders and investors will likely keep monitoring the API and weekly oil inventory reports.
The pound continuously trading weak on Monday dragged by expectations of negative rates in the UK following the BoE’s comments. On Friday the Sterling slipped 0.4% against the dollar as fresh data showed British retail sales dropped by a record 18% as the coronavirus crisis hammered the economy. EUR/USD recovered from the earlier losses after the German IFO survey came in on the positive note for the month of May. The Ifo Business Climate indicator for Germany rose to 79.5 in May 2020 from an all-time low of 74.2 in the previous month and above market expectations of 78.3.
The gold price trading steady on Monday on rising trade tensions between the Trump administration and Beijing.
US-China trade war update: The US said will add 33 Chinese firms and institutions to an economic blacklist and the White House National Security Advisor Robert O’Brien warned about sanctions on China if Beijing implements national security law on Hong Kong. The Chinese Foreign Minister Wang Yi said Americans should give up its “wishful thinking” of changing China and warned US actions are pushing the two countries to the brink of a new cold war.
Trading subdued on Monday with financial markets in Singapore, India, Britain and the United States are closed for public holidays.
GOLD: The gold price trading below $1730 during the European session after the reports the Japanese government would approve another stimulus package worth $929 billion.
The important levels to watch for today: Support- $1718 and $1700 Resistance- $1738 and $1750.
EUR/USD: EURUSD drifted lower in weak month-end trading on Monday after the German GDP shrank in the first quarter by 2.2 % compared to the previous quarter -0.1%.
The important levels to watch for today: Support- 1.0840 and 1.0810 Resistance- 1.0910 and 1.0940.
Quote of the day: Never stop investing, never stop improving. Never stop doing something new- Bob Parsons.