The British pound drops sharply against the EURO and the Australian dollar. Meanwhile, the Pound recovered from the early session losses against the US dollar. Overall, the momentum remains bearish throughout this week due to the post - Brexit uncertainty. On the other hand, UK shares surged for the third consecutive day lifted by the positive vaccine optimism.
European and UK shares trading steady on Thursday supported by the recent positive vaccines’ news. Pfizer shares surged another 3% on Wednesday after the regulators in the United Kingdom have approved Pfizer's vaccine for use. So far, the UK has ordered 40 million doses of the Pfizer/BioNTech jab - enough to vaccinate 20 million people.
Crude oil prices trading higher ahead of the outcome from OPEC meeting. The market participants expect the OPEC+ alliance will extend output cuts into at least until March 2021.
In the currency market, the Australian dollar climbed to fresh monthly highs lifted by better-than-expected economic data. During the Asian session, Australia reported strong trade surplus data, the exports increased by 5% in October while imports rose by 1%. The data gave further upside momentum to the currency pair.
Gold prices up for the third consecutive day after the US dollar plunged to the lowest level in two and half years. The yellow metal also received support on rising hopes for more stimulus.
On the data front, the China Caixin services PMI increased from 56.8 in October to 57.8 in November, that was better than the expected 56.5. On Wednesday, the US ADP employment data showed that private sector employment increased by 307,000 in November, the numbers came lower-than-expected 433K.
Moving ahead today, the important events to watch:
US – Weekly jobless claims: GMT – 13.30
US – ISM services PMI: GMT – 15.00
Worldwide, more than 64 million people have been confirmed infected and more than 1.47 million have died, according to Johns Hopkins University. The United States has passed 13.7 million confirmed cases, with more than 271,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair slightly retreated from the daily highs after mixed PMI data from Eurozone and Germany. On the downside, the crucial support to watch for today 1.2090/80 zones.
The important levels to watch for today: Support- 1.2080 and 1.2040 Resistance- 1.2150 and 1.2180.
GOLD: The yellow metal hit fresh weekly highs of $1843 on Thursday. While on the upside, the gold price will face strong resistance around $1848/1850 zones.
The important levels to watch for today: Support- 1832 and 1826 Resistance- 1843 and 1850.
Quote of the day: Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do – Mark Twain.
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