Crude oil prices dropped more than 8% this week and on Thursday, the West Texas Intermediate Crude oil price fell 7% that marked its largest daily percentage loss since September. The recent sell-off fuelled by a slowdown in the European vaccine rollout and a “third wave” of COVID-19 is being witnessed by Germany, Italy, and France.
Global stocks trading lower on Friday on the concern of rising treasury yields and fresh worries about the coronavirus pandemic in Europe. yields on US 10-year notes surged to the highest since early 2020 at 1.754% on Thursday.
Oil prices sell-off continues, while during the European session the oil prices slightly rebounded from previous session losses while the overall momentum remains bearish throughout this week.
In the currency market, the commodity currencies Canadian dollar, Australian dollar and New Zealand weakened against the US dollar after heavy sell-off in crude oil prices and climbing U.S. Treasury yields.
The safe-haven metal trading steady on Friday supported by a new wave of coronavirus infections and increasing tensions between the US and China. During the previous session, the gold price dropped more than $30 from the daily tops after US Treasury yields rose to their highest levels in more than a year.
On the data front, the Bank of Japan's left its easy monetary policy and goal of 2% inflation unchanged but widened the band in which long-term interest rates will be allowed to rise or fall around its target to 0.25% from 0.2%.
On Thursday, the Bank of England left interest rates at 0.1% and its bond-buying stimulus scheme unchanged.
Worldwide, more than 121 million people have been confirmed infected and more than 2.6 million have died. The United States has confirmed over 29.6 million cases and has had more than 538,100 deaths from COVID-19, the highest totals in the world.
USD/CAD: The currency pair slightly retreated from the early session high. While if the bullish momentum continues the next upside levels to watch 1.2510/50.
The important levels to watch for today: Support- 1.2460 and 1.2430 Resistance- 1.2500 and 1.2550.
GOLD: The yellow metal trading steady above $1740 during the European session. Overall momentum remained bullish throughout today. The important levels to watch today $1720 and $1750.
The important levels to watch for today: Support- 1736 and 1728 Resistance- 1744 and 1752.
Quote of the day: We don’t have to be smarter than the best. We have to be more disciplined than the rest – Warrant Buffet.
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