On Saturday, the World Health Organization (WHO) reported a record number of 200,000 new coronavirus cases, with the United States, Brazil and India showing the biggest increases. The number of people infected with COVID-19 across the world crossed 11.3 million, of which around 531,729 have died, according to Johns Hopkins. The US Centers for Disease Control and Prevention on Sunday reported 52,228 new cases and said the number of deaths had risen by 271 to 129,576. Brazil, the second-worst affected country in the world reported 26,051 new cases. India had on Sunday overtaken Russia to become the third-most affected country globally in terms of the numbers of Covid-19 cases. The total number of Covid-19 cases in the country now stands at 6, 97,413 and reported 25,000 new cases and 613 deaths in 24 hours.
Asian and European stocks trading higher on Monday, the Shanghai Composite climbed 4.58%, Hong Kong’s Hang Seng 3.06% and Japan’s Nikkei 1.84%. Last week, the Dow Jones gained 3.2%, the S&P 500 added 4% and the Nasdaq rose 4.6%.
Crude oil prices trading steady on Monday supported by last week inventory report and tighter supplies. The Oil traders will keep a keen eye on the API and EIA report on the global crude market this week.
The New Zealand dollar surged to fresh 4-week high after New Zealand’s Prime Minister Jacinda Adern announced an extension of its NZ$5.2 billion loan scheme until the end of the year. The British Pound edged higher during the European session following the UK Construction PMI jumped to 55.3 in June 2020 from 28.9 in the previous month, beating market consensus of 47.0.
Gold price started the week on a positive note; the risk of a second wave of coronavirus infection remains a major concern that will keep supporting the precious metal.
Moving ahead to the week, the investors will closely monitor the improvement in global economic data which includes RBA rate decision, US manufacturing data; US crude oil inventories report, US jobless claims, and Canada employment and housing data.
On the data front, the German factory Orders climbed 10.4% in May, rebounding from a record 26.2% plunge in April. The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. While the Eurozone retail sales also reported a strong rebound 17.8% in May, beating market forecasts of 15%.
XAU/USD: The yellow metal trading above $1770 on Monday supported by $1758 previous week low.
The important levels to watch for today: Support- 1765 and 1758 Resistance- 1790 and 1800.
EUR/USD: The currency pair trading strong on Monday against the dollar after strong German factory orders data.
The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1320 and 1.1350.
Quote of the day: To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking – Alexander Elder.
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