Eurozone, Germany, and UK September service PMI data reported better-than-expected. Moving ahead to the North American session, the US will release the latest ISM non-manufacturing PMI figures.
- UK services PMI – Actual: 56.1 Forecast: 55.1 Previous: 58.8
- Eurozone services PMI - Actual: 48.0 Forecast: 47.6 Previous: 50.5
- Germany Services PMI - Actual: 50.6 Forecast: 49.1 Previous: 52.5
Global stocks and US futures trading steady on Monday boosted by news that US President Donald Trump could be discharged from the hospital where he is being treated for COVID-19 as soon as today. The markets in China remain closed for the National Day holiday.
Crude oil prices rebounded from the early session lows on optimism around Trump’s health and growing concerns over the demand outlook. The prices also supported by an escalating workers’ strike in Norway that has shut four of Equinor’s oil and gas fields.
In the currency market, the Australian dollar trading strong ahead of the Reserve Bank of Australia meeting tomorrow. On the other hand, EUR/USD climbed to fresh weekly high after strong Eurozone retail sales data and better-than-expected PMI figures.
Gold price surged back to the $1900 zone on Monday ahead of US ISM – manufacturing data. During the last week, the yellow metal climbed more than 2% supported by the weaker dollar and economic uncertainties.
On the data front, Eurozone's retail sales jumped 4.4% month-on-month in August for a 3.7% year-on-year gain, beating economists’ expectations of a 2.4% monthly and a 2.2% annual increase.
On Friday, US non-farm payrolls fell short of expectations with 661K jobs gained - well below the 900K expected. The unemployment rate was also a surprise, falling from 8.4% to 7.9%.
The number of people infected with the coronavirus across the world hit 35.22 million, of which at least 1.04 million people have died and 24.52 million have recovered, according to data released by the Johns Hopkins University. The United States is the worst-affected country, with more than 7.4 million diagnosed cases and at least 209,725 deaths.
EUR/USD: The currency pair trades above 1.1750 during the European session after better-than-expected Eurozone and German economic data.
The important levels to watch for today: Support- 1.1710 and 1.1680 Resistance- 1.1775 and 1.1800.
GOLD: The yellow metal price hovers near the $1900 zone. This week gold traders waiting for the minutes from the last FED meeting and comments from the Fed Chair Jerome Powell and ECB’s Christine Lagarde.
The important levels to watch for today: Support- 1890 and 1880 Resistance- 1904 and 1914.
Quote of the day: n 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.
Read more- https://gulfbrokers.com/en/daily-market-report-179