Crude oil price trading steady on Monday ahead of OPEC meeting later this week. The Joint Ministerial Monitoring Committee (JMCC), which is co-chaired by Saudi Arabia and Russia, is set to meet on Aug. 19 to assess compliance with quotas and recommend any adjustments to the cuts if needed. In the last meeting, the OPEC has initially made a deal to taper their record production cuts of about 9.7mbpd to about 7.7mbpd from early august that has been in line with the initial plan.
Japanese stocks plunged on Monday after data showed the world’s third-largest economy shrank 27.8% from a year earlier in the three months ending in June. Chinese stocks traded lower after PBoC injected 700-billion-yuan worth of medium-term lending facility (MLF) loans at 2.95% for the fourth month.
Crude oil price trading higher on Monday supported by the latest rig data from oilfield services company Baker Hughes, as it showed the oil rig-count fell to a fresh, 15-year-low.
In The currency market, the Dollar index slightly recovered from the lows as investors cautiously waiting for the Federal Reserve minutes from last month’s meeting, due to be released on Wednesday. While the British pound trading strong against the dollar and Euro after positive comments from the Bank of England's chief economist Andy Haldane, he said the UK economy will see a rapid recovery from the coronavirus shock on the back of consumer spending.
The gold price trading unchanged on Monday after a 5% drop in the last week. This week Gold traders will closely monitor the recent updates from the US-China trade tensions and the minutes from Federal Reserve's last policy meeting.
On the US-China front, as per the recent update the talks between the US and Chinese officials over the phase-one trade deal that were supposed to take place on last Saturday were postponed. Meanwhile, US President Trump issued an executive order on Friday to force the TikTok owner to sell its US assets within 90 days, mentioning national security concerns and threatened to extend pressure to other Chinese firms such as Alibaba.
This week the main highlights of the economic calendar will be the release of the minutes from the Federal Reserve and RBA, UK and Eurozone CPI, OPEC meeting and Oil inventories.
Earnings to watch: Walmart, Nvidia and Alibaba
Worldwide, more than 21 million people have been confirmed infected and over 771,000 have died, according to Johns Hopkins University. In the US, the Covid-19 fatalities surpassed 170,000 in the US while the number of cases is more than 5.4 million. On the other hand, India on Monday reported highest-ever single day recoveries, the union health ministry announced. As many as 57,584 Covid-19 patients recovered on Monday, pushing the total number of recoveries to 19,19,842.
XAU/USD: The gold price trading stead above $1950 on Monday, on last week the precious metal witnessed the first weekly decline since June as traders booked-in profits.
The important levels to watch for today: Support- 1940 and 1920 Resistance- 1960 and 1980.
EUR/USD: The currency pair slightly retreated from the highs of 1.1860 and at the time of writing the pair trading around 1.1840.
The important levels to watch for today: Support- 1.1810 and 1.1770 Resistance- 1.1870 and 1.1900.
Quote of the day: In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.
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