Germany reported fourth-quarter GDP numbers on Friday, the data showed the German economy expanded 0.1% during the last quarter, compared to the expectations of 0%. On the other hand, the number of unemployed people in Germany dropped by 41 thousand in January of 2021. Both EUR/USD and German Dax slightly rebounded from the early session lows after the better-than-expected economic data.
US futures retreated from the highs. On Thursday, during the North American session, the US indices rebounded after the heavy sell-off but failed to close higher.
On the US earnings front, Honeywell (NYSE: HON), Chevron (NYSE: CVX) and Caterpillar (NYSE: CAT) reporting earnings today before the bell.
Crude oil price trading near the weekly lows on concerns that COVID-19 vaccine rollouts run into delays which may lead to further weakness in global fuel demand. The European Medicines Agency is expected to decide on whether to actually approve the AstraZeneca vaccine for use on Friday.
In the currency market, the Dollar index continuously trading strong on Friday supported by the sharp sell-off on Wall Street and rising coronavirus infections in the US and Europe.
The gold price extra volatility remains on Friday. During the previous session, the safe-haven metal climbed to above $1860 after the weak US GDP data.
On the data front, the US released mixed economic data on Thursday. US GDP expanded at a 4% annualized rate in the fourth quarter after increased by 33.4% in the third quarter. The New Home Sales in the US for December dropped to 842K, against the expected 860K. While weekly jobless claims data came better-than-expected, the initial jobless claims fell to 847,000 from the previous week's revised level of 914,000.
Moving ahead today, the important events to watch:
Canada: GDP – 13.30 GMT
US: Personal Income – 13.30 GMT
US: Pending home sales– 15.00 GMT
Worldwide coronavirus deaths have reached 2,198,825 with more than 101.9 million reported cases. The United States has confirmed over 25.6 million cases and has had more than 430,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair rebounded from early session lows boosted by the upbeat German economic data. At the time of writing, the pair trading above 1.2125.
The important levels to watch for today: Support- 1.2100 and 1.2070 Resistance- 1.2140 and 1.2180.
GOLD: The precious metal trading steady above $1850 during the European session. The important levels to watch today $1830 and $1870.
The important levels to watch for today: Support- 1840 and 1830 Resistance- 1865 and 1874.
Quote of the day: Stick to your investment strategy, do not turn temporary declines into permanent losses- Warren Buffet.
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