The official data showed Friday, China retail sales dropped 1.1 per cent on-year, worse than a predicted 0.1 per cent rise and compared with a 1.8 per cent drop in June. Meanwhile, Industrial production grew by 4.8% in July – the same as the previous month, but below predictions from Bloomberg analysts of 5.2% growth. Moving ahead to the North American session, the US retail sales figures for July will release today at 12:30 GMT.
Global stocks trading mixed on Friday as investors remained cautious due to the stalled U.S. stimulus talks. House Speaker Nancy Pelosi said Thursday the two sides remain “miles apart” in the stimulus talks.
Oil prices trading lower on Friday after the International Energy Agency cut its forecast for global oil demand for the whole of 2020 to 91.9 million barrels per day. On the other hand, Russian news agencies reported that Russian Energy Minister Alexander Novak had not expected quick decisions on production cuts when OPEC+ monitoring committee meets next week.
In The currency market, the Australian dollar trading unchanged after the Reserve Bank of Australia’s governor Lowe said early Friday that rates could remain at record lows for five years. US dollar slightly recovered from the early session lows boosted by better-than-expected data showing weekly jobless claims fell below 1 million for the first time since March.
The gold price trading steady above $1940 on Friday, on Tuesday the precious metal suffered its worst one-day rout since 2013 after positive news about several Covid-19 vaccines.
On Thursday, U.S. Department of Labor reported that the U.S. Initial Jobless Claims rose by 963k in the week ended Aug 8th, lower than 1.12M anticipated. Dallas Fed President Robert Kaplan said the unemployment levels in the US could remain around 9% by year-end, and any reduction in these levels will depend on how businesses and consumers take steps to contain the spread of the virus.
On the US-China front, US Trade Representative Lighthizer and Chinese Vice President Liu He are likely to meet this Saturday to discuss the implementation of the phase one trade deal among other issues.
Moving ahead today, the important events to watch:
EUROZONE GDP – 09.00 GMT
US Retail sales – 12.30 GMT
Globally, over 20 million (20,532,835) people have been infected with the novel coronavirus, including 747,845 deaths. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece, and Spain. Germany’s Health Minister Jens Spahn said that they are worried about the rise in the coronavirus cases but are confident about the health system. The Covid-19 tally in India crossed the 2.4 million mark after 65,553 fresh cases were registered within a span of 24 hours.
XAU/USD: The gold price hovers near $1940 area ahead of US retail sales numbers, supported by $1920(previous all-time high).
The important levels to watch for today: Support- 1940 and 1920 Resistance- 1960 and 1980.
EUR/USD: The currency pair retreated from the fresh weekly highs of 1.1860 and at the time of writing, the pair trading below 1.1800.
The important levels to watch for today: Support- 1.1770 and 1.1710 Resistance- 1.1880 and 1.1915.
Quote of the day: Wide diversification is only required when investors do not understand what they are doing – Warren Buffet.
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