Germany's GDP contracted by 10.1% in the second quarter of 2020, weaker-than-expected compared to the market expectations of a 9.0% contraction. "This was the sharpest decline since the quarterly GDP calculations for Germany began in 1970," the statistics office said. Meanwhile, the German Unemployment Rate unchanged at 6.4% for the current month and the Unemployment Change decreased by 18K. Moving ahead to the North American session, the US will release the last quarter GDP numbers. The world’s largest economy is expected to see its GDP contract about -34% in the last quarter versus -5% prior.
European stocks and DAX trading near the session low after the data showed on Thursday disappointing German GDP numbers and mixed employment data. During the Asian session, the Japanese stocks ended 1.1% lower, amid weak earnings by several big-cap companies.
Crude oil price trading lowers on Thursday, amid fears over a resurgence in coronavirus infections across the globe that could slow recovery in fuel demand.
The dollar index recovered from the previous session losses after the Federal Reserve signalled support for the economy. While the commodity currencies like the Australian dollar and New Zealand dollar trades near the week low On Thursday.
Gold price slightly retreated from the all-time high, at the time of writing the precious metal trading below $1960.
On Wednesday, after two days of meeting the Federal Open Market Committee reiterated plans to keep interest rates near zero until the economy sees further improvement. The Fed Chairman Powell hinted that the economy would need additional support measures to cope with the outbreak of the economic crisis. “The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in keeping the virus in check,” Powell said.
Moving ahead today, the important events to watch:
US Initial weekly Jobless claims – 12.30 GMT
US Second-Quarter GDP – 12.30 GMT
The important earnings to watch today: Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Gilead Sciences (NASDAQ: GILD).
The number of people infected with the coronavirus across the world surpassed 17 million, of which at least 667 thousand people have, according to data released by the Johns Hopkins University.
XAU/USD: The yellow metal price dropped almost 25$ after the price found double top near the all-time high of $1980.
The important levels to watch for today: Support- 1940 and 1920 Resistance- 1980 and 1995.
GBP/USD: The currency pair trading below the psychological level 1.30, during the previous session the pair traded above 1.30 after the Fed statement.
The important levels to watch for today: Support- 1.2940 and 1.29 Resistance- 1.13010 and 1.3040.
Quote of the day: Only buy something that you would be perfectly happy to hold if the market shut down for 10 years - Warren Buffet.
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