The British pound dropped to two week low of 1.2455 on Monday due to worries Brexit negotiations between Britain and the EU making no progress. Last week, both the EU and UK announced some progress in the negotiations, but no details were presented. This week the pound traders closely monitor a new round of Brexit negotiations and the updates from Bank of England policy meeting on Thursday. As per the recent report, a “high-level” assembly on Brexit is scheduled on Monday, involving high officers from the UK and EU.
EQUITIES
Global stocks trading lower on Monday as investors worried about the new wave of coronavirus infections as cases mount in the US, Tokyo and Beijing. Chinese stocks slide after Beijing reported its second consecutive day of record new cases on Monday. On Wall Street last week Dow Jones had its worst trading day since March 15 on Thursday, last week, the Dow lost 5.5%, the S&P 500 retreated 4.7% and the NASDAQ declined 2.3%.
OIL
Crude Oil prices started this week with a bearish note as markets worry about the possibility of a second wave of coronavirus cases amid an increase in the number of infections in US and Asian countries.
CURRENCIES
Commodity currencies like the Australian dollar and New Zealand dollar fall to fresh session low on Monday after the dollar renewed upside momentum and disappointing economic data from China.
GOLD
The yellow metal price declined to fresh week low on Monday. Last week, gold prices edged higher followed by the Fed’s expectations for a slow recovery in the US economy.
Economic Outlook
On the data front, during the Asian session, the china Industrial output rose by 4.4% and retail sales fell by 2.8%, both showing the world's second-largest economy is recovering but missing expectations.
Moving ahead to the new week, the investors keep an eye on the updates from UK-EU meeting, European council meeting, and central banks meeting. Investors also monitoring a spike in coronavirus cases in the US, as fears grow that another outbreak could inflict greater damage on the global economy.
Coronavirus Update:
The number of people infected with the coronavirus across the world rose above 7.69 million, of which at least 427 thousand people have died. In the US the number of infections climbed to over 2.09 million, with states including Texas and Florida reporting record rises after reopening their economies. In India, the total number of coronavirus cases increased to 330k. Meanwhile, Europe has decided to ease restrictions and reopen borders with a number of EU nations. In Turkey, the new coronavirus cases almost doubled the level to which they had fallen in early June when the country reopened their facilities.
Technical Outlook
GOLD: Gold price trading below $1720 during European session after climbed 2.6% last week.
The important levels to watch for today: Support- 1708 and 1700 Resistance- 1726 and 1735.
DOLLAR INDEX: The greenback rebounded from a multi-month low of 95.80 after a three-week losing streak.
The important levels to watch for today: Support- 96.80 and 96.40 Resistance- 97.40 and 97.90.
Quote of the day: The good speculators always wait and have patience, waiting for the market to confirm their judgement-Jesse Livermore.
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