DAILY MARKET REPORT - Friday, Aug 21, 2020

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On Friday, the latest data showed the Eurozone manufacturing and German services PMI activity growth dropped in August. Meantime, German manufacturing production showed strong improvement. Germany announced on Thursday 1,707 new COVID cases over the previous 24 hours, the highest number since late April.

  • German flash services PMI (August): 50.8 vs 55.1 expected, prior 55.6
  • Eurozone manufacturing PMI(August): 51.7 vs 52.9 expected, prior 51.8
  • German flash manufacturing PMI (August): 53 vs 52.5 expected, prior 51

EQUITIES

On Thursday, Wall Street finished higher while European shares closed lower after the minutes of the July European Central Bank meeting warned, “the breadth and scale of the recovery remained uneven and partial.”

OIL

Crude Oil prices recovered from the early losses on European session, the price dropped after the OPEC+ report showed the group expects oil demand to drop by 9.1 million bpd in 2020, 100,000 bpd more than in its previous estimate.

CURRENCIES

In The currency market, the EUR/USD dropped back to 1.18 level after the weaker-than-expected PMI numbers. On Thursday, the currency pair rebounded from 1.18 and hit a new session high of 1.1880 today before the PMI figures released.

GOLD

On Thursday, the gold price closed slightly higher boosted by an unexpected rise in the jobless claims and weaker-than-expected Philly Fed Manufacturing Index data.

Economic Outlook

On Thursday, U.S. Department of Labor reported that the U.S. Initial Jobless Claims rose by 1,106,00 in the week ended Aug 15th, higher than 925k anticipated.

On the US-China front, Washington rejected plans to meet with China over the Phase 1 trade deal after officials in Beijing said bilateral talks could be held in the coming days.

Moving ahead today, the important events to watch:



CANADA Retail sales – 12.30 GMT



US manufacturing PMI – 13.45 GMT



US existing home sales– 14.00 GMT


Coronavirus update:

The number of people infected with the coronavirus across the world hit 22.7 million, of which at least 794 thousand people have died and 14.5 million have recovered, according to data released by the Johns Hopkins University. France, Germany, and Spain have all marked the highest day-to-day increase in COVID-19 infections since the end of their lockdowns.

Technical Outlook

XAU/USD:
The gold price trading around $1930 on Friday, supported by $1920. Any break below this level will open doors to $1900.

audusd


The important levels to watch for today: Support- 1920 and 1900 Resistance- 1940 and 1960.

GBP/USD: The British pound retreated to below 1.3180 during the European session after the EU's chief negotiator Michel Barnier said that the state aid still no willingness on UK side to take on board EU priorities.

euraud


The important levels to watch for today: Support- 1.3130 and 1.3100 Resistance- 1.3200 and 1.3260.

Quote of the day: If you shopping for common stocks choose the way you would buy groceries, not the way you would buy perfume- Benjamin Graham.


Read more- https://gulfbrokers.com/en/daily-market-report-151
 
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