Crude oil prices started the new week slightly higher. During the last week, the oil prices ended lower after larger-than-expected crude oil inventory builds in the US. Both API and EIA inventory data showed that crude stockpiles in the US increased by 2.6 and 4.351 million barrels in the week ended January 15th.
European stocks trading mixed on Monday on worries about the rising number of coronavirus cases around the world while both Chinese and Japan shares climbed to the new session highs.
On the earnings front, it’s a busy week ahead. On Wall Street, Tesla joins with other big tech companies including Apple, Microsoft, and Facebook. In the UK, the budget airlines Wizz Air and Easy jet is also scheduled to announce its quarterly results on Thursday.
Crude oil prices slightly rebounded from the previous week lows supported by the weaker dollar. Moving ahead, this week the investors should closely watch the US inventory reports and the FOMC decision.
In the currency market, the Australian dollar traded strongly during the Asian session after Australia’s medical regulator has approved the use of The Pfizer/BioNTech vaccine. The country's first batch of the Pfizer vaccine is due to arrive in February.
The gold price trading unchanged on Monday. During the European session, the safe-haven metal trading above $1855 supported by the downbeat German IFO data and mounting fears over COVID-19 social restrictions.
On the data front, the Ifo Business Climate indicator for Germany fell to 90.1 in January compared to 92.2 in the previous month.
This week the main highlights of the economic calendar will be the release of the Fed's monetary policy decision and US GDP, UK and Germany employment report.
Worldwide, the number of COVID-19 cases reported is more than 99 million. The United States has reported 25 million confirmed cases and has had more than 417,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair retreated from the highs after weaker-than-expected German economic data.
The important levels to watch for today: Support- 1.2130 and 1.2100 Resistance- 1.2190 and 1.2220.
GOLD: The gold price struggling to find the upside momentum. Overall, the momentum remained bearish throughout this month.
The important levels to watch for today: Support- 1848 and 1836 Resistance- 1865 and 1875.
Quote of the day: I am not better than the next trader, just quicker at admitting my mistakes and moving on to the next opportunity – George Soros.
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