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It's a big day for the EURO. The traders and investors remained cautious of the ECB's monetary policy decision and the press conference of its president Christine Lagarde. The main interest rate to remain unchanged at 0% and the deposit rate at -0.50%.
EQUITIES
Chinese stocks ended lower on Thursday after China's retail trade unexpectedly declined by 1.8% in June 2020. Australian shares closed lower today, on the concern of accelerating coronavirus infection rates in the country and the unemployment rate surged to 7.4% in June 2020 from 7.1% in May.
OIL
Crude oil prices eased after OPEC and allies such as Russia agreed to taper record supply curbs from August. Meanwhile, the recent industry data showed that US crude inventories declined by 7.5 million barrels last week, compared with market expectations of a fall of 2.1 million barrels.
CURRENCIES
The British pound trading remained unchanged after better than expected employment report. The UK unemployment rate remained unchanged at 3.9% for May as compared to 4.2% anticipated.
GOLD
The gold price rose to continue to stay near the record highs, amid rising COVID-19 infections globally and increased tensions between U.S and Beijing.
Economic Outlook
On the data front, China's gross domestic product grew 3.2% on year in the April-June quarter after contracting during the previous three months. In the first quarter, the country experienced a 6.8% contraction. Meantime, Australia's unemployment rate increased to 7.4% in June from 7.1% in May, reaching the highest mark since November 1998 while employment change in June increased by 210.8K, which turned out to be almost twice as good as market expectations.
On the earnings calendar, major US banks Goldman Sachs and U.S. Bancorp reported their latest financial results on Tuesday. The bank second-quarter earnings improved 7.75 % compared with the same quarter last year.
Moving ahead today, the important events to watch:
EUROZONE ECB Interest rate decision – 11.45 GMT
US Retail sales – 12.30 GMT
EUROZONE ECB Press conference – 12.30 GMT
US Weekly jobless claims – 12.30 GMT
Coronavirus update:
The number of people infected with the coronavirus across the world hit 13.55 million, of which at least 584 thousand people have died, according to Johns Hopkins. The United States set a record Wednesday with more than 67,000 cases registered in the previous 24 hours. India reports another biggest single-day jump with 32,695 new infections in the past 24 hours, bringing the country's tally to 968,876.
Technical Outlook
XAU/USD: The yellow metal moving sideways and stay in a trading range between $1790 and $1818.
The important levels to watch for today: Support- 1800 and 1790 Resistance- 1810 and 1820.
EUR/USD: The currency pair retreated from 4-month high, at the time writing the pair trading below 1.14000 ahead of ECB meeting.
The important levels to watch for today: Support- 1.1370 and 1.1320 Resistance- 1.1450 and 1.1500.
Quote of the day: Patience is one of the most valuable attributes in investing – Martin Zweig.
Read more-https://gulfbrokers.com/en/daily-market-report-127
