The British pound trading strong against the Dollar and Euro after the new £30 billion fiscal stimulus plan. On Wednesday UK Chancellor Rishi Sunak's announced fresh stimulus measures to support jobs and activity in the UK disappointed investors. Other measures included a stamp duty holiday, a £3 billion green investment package and a temporary cut to VAT on tourism and hospitality.
Global stocks trading mixed on Thursday while Chinese and Japanese shares closed higher. Asian stocks boosted by positive China’s inflation data released during the Asian session. In Australia, the S&P/ASX 200 is gaining momentum and trades 0.9% heading into the afternoon in Sydney.
Crude oil price trading unchanged on Thursday after the data from both the EIA and the API showed the US crude inventories unexpectedly increased last week.
On the currency market, the Chinese yuan rose to a four-month high of 6.9872 per dollar on Thursday. Meantime, the EUR/USD trading slightly weaker ahead of today’s Eurogroup meeting, at which Eurozone finance ministers are set to elect their new president.
The gold price hovers around the highest level since 2011 high which was driven by the rise in the number of coronavirus cases from the US and worldwide.
On the data front, China's National Bureau of Statistics reported the consumer price index for the country increased by 2.7% in June.
On Wednesday, the Federal Reserve published a partial list of banks and credit unions participating in its Main Street Lending Program in a bid to drum up interest in the program designed to help small and midsize companies weather the recession caused by the coronavirus pandemic. Meanwhile, Bank of Japan's (BoJ) Governor Haruhiko Kuroda said the economic recovery will depend on the development of the pandemic.
Moving ahead to the North American session, the US unemployment claims for the last week will be the important events to watch.
The number of people infected with the coronavirus across the world surpassed 12 million, of which around 549 thousand have died, according to Johns Hopkins. Australia reported 134 new coronavirus cases on Wednesday. The country’s second lockdown began on Wednesday, as five million residents of Australia’s second-largest city were forced to stay in their houses for six weeks, except for essential reasons. Indonesia's confirmed infections have soared to a new daily high of 2,657, up from Wednesday's record of 1,853. The country has also reported another 58 deaths. This brings the total number of coronavirus cases to 70,736, including 3,417 fatalities.
GOLD: Gold price trading steady above $1810 on Thursday. The yellow metal dropped to $1806 during the previous session after placing a high of $1,818.
The important levels to watch for today: Support- 1806 and 1800 Resistance- 1818 and 1830.
AUD/USD: The currency pair trading now near 0.6980 after climbing to the psychological level 0.70 during the European session.
The important levels to watch for today: Support- 0.6960 and 0.6920 Resistance- 0.7000 and 0.7030.
Quote of the day: Without passion, you do not have energy. Without energy, you have nothing- Warren Buffet.
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