DAILY MARKET REPORT Friday, June 05, 2020



The US dollar fell to 11- week low ahead of NFP report. The dollar depreciated further on Thursday after EURO edged higher responding to the ECB decision to increase its bond-buying programme by a higher-than-expected €600 billion. The dollar index dropped from 100.60 on May 14 to today's low of 96.40. The traders and investors now await the US jobs report expected to be released at 12:30 GMT.


European stocks extended gains on Friday on hopes for a quicker economic recovery after the European Central Bank delivered a larger increase in its bond-buying programme. South Korean shares gained for a fifth straight session; with the benchmark index Kospi ending 0.2% higher at 2151.18.


Crude oil prices edged higher after reports that Iraq has removed its objections to OPEC+ extending its petrol production cuts. As per the recent update, OPEC and allies led by Russia, a grouping known as OPEC+, will meet on Saturday to discuss extending output cuts.


EUR/USD ignored weak April German factory orders data and climbed to 3-month high 1.1380 ahead of NFP. The factory orders plunged -25.8% MoM in April of 2020, compared with market expectations of a -19.7%. This was the steepest decline in factory orders since the series began in January 1991. The pound surged to a 2-month high against the dollar as Brexit negotiations continue, traders, hoping that the UK and the EU might reach a compromise on fisheries and trade rules.


Gold price trading strong ahead of US jobs report. The yellow metal also supported by geopolitical tensions between the US and China and widespread protests in major US cities.

Economic Outlook

On Thursday, European Central Bank delivered a €600 billion increase in its bond-buying programme and extended it by six months, to June 2021. Meantime, the US weekly jobless claims rose 1.8 million last week, lower than the previous weeks’ average, but the continuing claims rose above 21 million.

Moving ahead today, the important events to watch:

  • US Non-farm payrolls job report – 12.30 GMT

  • US unemployment rate – 12.30 GMT

  • Canada Ivey PMI- 14.00 GMT

Coronavirus Update:

Coronavirus cases have crossed 6.7 million marks worldwide and 390k deaths. The United States is the worst-hit country, with 1,760,740 cases and 103,472 deaths. Till now, coronavirus has affected 213 countries and territories around the world. Meanwhile, Iran announced 3,574 new coronavirus infections on Thursday, it's highest daily count since the outbreak began in February.

Technical Outlook

The gold price trading above $1700 during the European session, Investors now wait for the U.S. NFP data due later today.


The important levels to watch for today: Support- $1700 and $1688 Resistance- $1720 and $1727.

EUR/USD: The pair retreats from 3- month high of 1.1380 and currently trading below 1.1330.


The important levels to watch for today: Support- 1.1280 and 1.1190 Resistance- 1.1380 and 1.1490.

Quote of the day: Save to invest, don’t save to save. The only reason to save money is to invest it- Grant Cardone.