DAILY MARKET REPORT - Friday, Oct 16, 2020

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US Dollar hovers near the two-week high ahead of US retail sales numbers that will come out at 12:30 GMT, which is expected to show a rise of 0.8%.

EQUITIES

Global stocks trading mixed on Friday amid concerns over rising coronavirus infections and fresh lockdown restrictions in several countries around the world. Meanwhile, US futures slightly rebounded after President Donald Trump said on Thursday that he was willing to raise his offer of $1.8 trillion for a COVID-19 relief deal. Australian shares retreated from the highs after RBA Governor Philip Lowe left the door open for a November interest rate cut.

OIL

Crude oil prices slipped lower on Thursday amid concerns about weak fuel demand after a resurgent of COVID-19 infections across Europe. The daily number of new infections at a global level reached a new high in the past 24 hours as nearly 400,000 new cases were registered. On the other hand, the EIA data showed crude oil stockpiles in the US fell by 3.818 million barrels last week, more than market expectations of a 2.835 million drop.

CURRENCIES

In the currency market, the Canadian dollar surged more than 100 pips on falling oil prices and disappointed ADP employment data.

GOLD

Gold price recovered from the previous session lows after weaker-than-expected U.S. weekly jobless claims and uncertainty about new U.S. fiscal stimulus.

Economic Outlook

On the data front, the US released the latest Unemployment Claims data, which came in at 898K against the projected 810K and the previous 845K.

On the earnings front, Morgan Stanley (NYSE: MS) third-quarter financial results exceeded Wall Street expectations. The investment bank profits increased by 25% to $2.7 billion.

Moving ahead to the North American session, the Investors will likely keep a look at the economic releases includes US retail sales and industrial production data.

Coronavirus update:

The United States has the highest number of reported cases and deaths of any nation. More than 1 million people have died from the disease worldwide. Global cases exceed 38 million and the total number of recoveries stood at 29.38 million. India is on the second spot with 7.37 million cases and 112,146 deaths. France recorded a record of 30K new infections on Thursday and reimposed a state of health emergency and introduced curfews.

Technical Outlook

GBP/USD:
The British pound trading volatile ahead of UK Prime Minister Boris Johnson's speech today. He will announce his decision on whether to continue or abandon talks on future relations.

euraud


The important levels to watch for today: Support- 1.2860 and 1.2800 Resistance- 1.2950 and 1.30.



GOLD: The yellow metal trades steady above $1900 on Friday ahead of US retail sales data. Overall the momentum remained bullish throughout today.

audusd


The important levels to watch for today: Support- 1906 and 1900 Resistance- 1914 and 1920.

Quote of the day: The stock market is designed to transfer money from the active to the patient - Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-188
 
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