The British pound trading lower against the Dollar and Euro on Monday as Brexit trade talks resume this week. On Monday, Britain’s chief negotiator Frost will meet in person EU’s deputy chief negotiator Martinez Alberola in Brussels for the first time since March. Meantime, Ireland’s Foreign Minister Simon Coveney said on Monday that the UK must follow through on Brexit promises.
Global stocks are trading in the negative territory as the surge in U.S. coronavirus cases has investors questioning the global economic recovery. Japan’s Nikkei 225 is worst hit as it has plunged over 1%, followed by Hong Kong’s Hang Seng and China’s Shanghai Composite. On Wall Street, Facebook shares dropped 8% on Friday after some of the world's biggest advertisers, including Unilever and Coca Cola, have pulled ads from the platform citing its failure to address hate speech.
Crude oil price started this week with a bearish note on growing concerns about the latest spike in coronavirus cases and rising crude inventories.
EURO rose against the dollar on Monday after Eurozone economic sentiment improves in June. The economic sentiment indicator in the Euro Area rose by 8.2 points from the previous month to 75.7 in June 2020.
The yellow metal has gained almost 1.4% so far during the previous week. The record jump in the U.S COVID-19 infections caused a surge in metal prices for the third straight week.
Moving ahead to the North American session, investors will closely monitor the latest updates from UK/EU trade negotiations and the US pending home sales figures. Meanwhile, British Prime Minister Johnson is expected to announce the first school rebuilding program since 2014 later in the day, which is estimated to cost over £1 billion.
According to Johns Hopkins, the number of people infected with COVID-19 across the world crossed 10.1 million, of which around 502 thousand have died. The United States has become the worst-affected country, with more than 2.5 million diagnosed cases and at least 125,539 deaths. The cases are also spiking in South America — most notably in Brazil, which has seen more than 1.2 million confirmed cases and more than 57,000 reported deaths On Sunday China has imposed a strict lockdown near Beijing to curb a fresh outbreak.
GOLD: Gold price trading steady above $ 1770 on Monday, supported by concerns over the second wave of coronavirus infections.
The important levels to watch for today: Support- $1764 and $1745 Resistance- $1778 and $1795.
EUR/USD: The pair trading above 1.1250 during the European session supported by 1.1240 and 1.1190.
The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1280 and 1.1310.
Quote of the day: The best traders are not afraid of holding on to strong stocks, they are afraid of holding on to losing stocks- Tyler Bollhorn.
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