DAILY MARKET REPORT - Thursday, Oct 01, 2020

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The British pound plunged more than 100 pips during the European session after the EU and the UK failed to close differences in the latest round of trade talks. On the other hand, UK Manufacturing PMI reported 54.1 for the last month, slightly lower than expected.

EQUITIES

Wall Street ended higher on Wednesday on hopes of US stimulus and positive US economic data. "US Treasury Secretary Steve Mnuchin said that stimulus plan) talks are progressing very well," Meanwhile, the Chinese markets closed on Thursday for a national holiday. Trading on the Tokyo Stock Exchange was suspended Thursday because of a problem in the system for relaying market information. The Exchange said that all trading was stopped because of the problem and will not resume for the rest of the day.

OIL

Crude oil prices rebounded from the previous session lows after the latest EIA inventory data showed the crude oil stockpiles in the US drop by 1.980 million barrels in the week ended September 25th.

CURRENCIES


In the currency market, the EUR/USD slightly retreated from the daily tops after mixed economic data from Eurozone and Germany.

GOLD

The Gold price trading below the $1900 psychological level on Thursday boosted by the weaker dollar.

Economic Outlook

On the data front, the Eurozone Manufacturing PMI jumped up to 53.7 in September (Aug - 51.7). While Eurozone unemployment rate increased to 8.1% in August 2020 from an upwardly revised 8% in the previous month.

On Wednesday, the US ADP employment change report indicated an increase of 749K jobs in September after rising by 481K in the previous period. Analysts had expected an increase of 650K.

Moving ahead today, the important events to watch:

US – Initial jobless claims: GMT – 12.30

US – Manufacturing PMI: GMT – 13.45

US – ISM manufacturing PMI: GMT – 14.00

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 33.9 million, of which at least 1 million people have died and 23.6 million have recovered, according to data released by the Johns Hopkins University. India reports 86,821 new cases over the last 24 hours, up from 80,472 the previous day, pushing the country total over 6.3 million. Canada reported a total of 1,796 new cases of the novel coronavirus Wednesday, the country has now seen a total of 158,592 COVID-19 infections to date.

Technical Outlook

Dollar Index:
The Index trading near the weakly lows ahead of US employment data. Overall, the momentum remained bearish throughout this week.

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The important levels to watch for today: Support- 93.60 and 93.30 Resistance- 94 and 94.50.

GOLD: The yellow metal started the month on a positive note. At the time writing, the gold price trades below $1900. Any break above $1900 the next upside levels to watch $1910 and $1920.

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The important levels to watch for today: Support- 1890 and 1880 Resistance- 1905 and 1910.

Quote of the day: Silence is golden, and gold is up these days so silence is a solid investment- Jarod Kintz.


Read more- https://gulfbrokers.com/en/daily-market-report-177
 
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