Moving ahead today the investors look forward to the updates from European leaders meeting and Quadruple witching - when large derivatives positions rollover as futures and options expire in what is called ‘quadruple witching’, which happens once a quarter. The European Union 27 leaders meeting already started to discuss plans of the €750 billion recovery fund flan to support the countries.
Asian stocks end mixed on worries about a second pandemic wave and negative comments from President Donald Trump. Donald Trump said on Thursday China may have intentionally spread coronavirus to damage other economies. While UK stocks gained on Friday after the country Retail Sales climbed 12% in May.
Crude oil prices recovered from early losses after OPEC+ committed to curb production, with both Iraq and Kazakhstan willing to compensate for overproduction in May.
The Pound remained little unchanged against Euro and the dollar after the UK retail sales rose 12% in May versus 6.3% expected and -18.1% printed a month earlier. The US dollar is continually trading bullish against other major currencies due to the growing fears of a second wave of coronavirus.
Gold prices trading steady on Friday after a renewed focus on US-China tensions and a rise in the number of jobless claims last week.
On the data front, Australia retail sales jumped by a record 16.3% in May, the data rebounded from the previous month's sharp decline of -17.7% after the easing of Covid-19 lockdown measures in the country. On Wednesday, the Bank of England (BoE) kept the interest rates unchanged and expanded the asset purchases program by 100 billion pounds as expected. The Committee also voted by a majority of 8-1 for the Bank of England to increase the target stock of purchased UK government bonds, financed by the issuance of central bank reserves, by an additional £100 billion, to take the total stock of asset purchases to £745 billion.
Moving ahead today, EU leaders hold a summit to discuss the European Commission's ambitious plan which including €500 billion in grants mutually funded. The other important events to watch:
Canada retail sales – 12.00 GMT
U.S. Fed Chair Powell Speaks– 17.00 GMT
The number of people infected with the coronavirus across the world rose towards 8.5 million, of which over 445 thousand have died. The United States continues to head the list of badly-hit nations with 2.190 million cases and 120,688 deaths. The number confirmed COVID-2019 cases in Europe amounts to 2,471,792 and the number of fatalities is 190,304. South Africa reported 3,478 new cases of the novel coronavirus on Thursday, bringing the overall total in the country to over 80,000.
GOLD: Gold price trading in a narrow range during the European session supported by $1718 and $1708.
The important levels to watch for today: Support- $1718 and $1708 Resistance- $1735 and $1745.
EUR/USD: The pair trading above 1.1200 on Friday ahead of the results from European leaders meeting.
The important levels to watch for today: Support- 1.1180 and 1.1140 Resistance- 1.1240 and 1.1290.
Quote of the day: Investing is the intersection of economies and psychology- Seth Klarman.
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