DAILY MARKET REPORT - Friday, July 17, 2020

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This week several countries released their latest positive inflation numbers. The first CPI numbers published by the U.S. Labor Department on Tuesday, the consumer price index rose 0.6% last month, the biggest gain since August 2012, after easing 0.1% in May. On Wednesday, the National Statistics (ONS) said the UK inflation rate unexpectedly climbed to 0.6% in June from a 4-year low of 0.5% in May. Meanwhile, New Zealand Annual inflation rate declined to 1.5% year-on-year in the second quarter of 2020 from 2.5% in the previous three months. On Friday, the Eurozone CPI report for June, the consumer prices rose +0.3% on a yearly basis, up from a four-year low of 0.1% in the previous month.

EQUITIES

Global stocks trading lower on Friday investors remained cautious about the ever-increasing coronavirus cases and worsening US-China relations. The Japanese stocks fell on Friday amid rising fears over the development of COVID-19 cases in metropolitan Tokyo.

OIL

Crude oil prices trading slightly lower on Friday. Overall, this week Oil prices traded sideways following a decision by the OPEC and its allies to begin trimming production cuts next month.

CURRENCIES

The EUR/USD back to above 1.1400 ahead of EU summit, which is meeting to continue negotiations about the nature of the EUR 750 billion pandemic recovery fund.

GOLD

The Gold price recovered from the previous session lows of Thursday and trading above the psychological level of $1800.

Economic Outlook

On the data front, the European central bank kept the interest rate and the emergency coronavirus stimulus program unchanged. On the US front, the US retail sales beat expectations in June – up 7.5% vs. expected 5.0% and the Philly Fed Manufacturing Index also rose to 24.1 from the 20.0 that was forecast.

On the earnings calendar, Bank of America (NYSE: BAC) announced better-than-expected Q2 earnings. While the revenue of second-biggest U.S. bank dropped 5.3% from a year earlier. Netflix stock fell 9% to $480 in after-hours trade as the company signalled weaker subscriber growth and profits missed expectations.

Moving ahead to the North American session, the European Union Leaders Summit will be the important events to watch.

Coronavirus update:

The number of people infected with the coronavirus across the world rose surpassed 13.8 million, of which at least 590 thousand people have died, according to Johns Hopkins. The US, the world’s worst-affected country, now has a total of more than 3.3 million cases and 135,000 deaths. Meanwhile, Brazil, which is the second worst-hit country after the United States, crossed the 2 million mark in terms of cases on Thursday.

Technical Outlook

XAU/USD:
The yellow metal again found strong buyers around $1795 area and at the time writing the gold price trading around $1803.

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The important levels to watch for today: Support- 1795 and 1780 Resistance- 1810 and 1818.

GBP/USD: This whole week the currency pair traded in a range between from 1.2480 to 1.2660. Overall, the movement remained bearish throughout this week.

cruse


The important levels to watch for today: Support- 1.2530 and 1.2480 Resistance- 1.2580 and 1.2620.

Quote of the day: An investor’s worst enemy is not the stock market but his own emotions.


Read more- https://gulfbrokers.com/en/daily-market-report-128
 
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