DAILY MARKET REPORT - Thursday, Oct 15, 2020



The British pound trading volatile ahead of the European Union summit on Thursday as investors waiting for further updates about the future of negotiations between the European Union and Britain. While the UK government hinted at its willingness to extend the Brexit negotiations beyond the earlier October 15 deadline set by PM Boris Johnson.

Wall Street ended lower on Wednesday for the second consecutive day after weaker-than-expected Q3 earnings results and US Treasury Secretary Steve Mnuchin cast doubt that additional fiscal stimulus would happen before the election. On the earnings front, Goldman Sachs (GS) Q3 financial results exceeded Wall Street estimates on Wednesday on strong bond trading and asset management, while fellow bank stocks Bank of America (BAC) and Wells Fargo (WFC) reported disappointing results.


Crude oil prices extend gains on Thursday after the API inventory report. The data showed crude stockpiles decreased by 5.42 million barrels in the week ended October 9th of 2020.


In the currency market, the Australian dollar slipped to a new weekly low on Thursday after mixed employment data and weaker-than-expected China inflation figures. On the other hand, US Dollar surged higher amid fading chances of a new U.S. fiscal stimulus package being finalized before the November elections.


Gold price trading lower on Thursday, during the previous session the yellow climbed back to above $1910 but failed to close above $1900 on a daily basis.

Economic Outlook

On the data front, the Australian Bureau of Statistics data revealed that Australia’s unemployment rate inched higher to 6.9 percent in September from 6.8 percent in August. On the other hand, China's consumer price index, grew 1.7 percent and down from 2.4 percent in August, the National Bureau of Statistics said on Thursday. Meanwhile, the producer prices declined by 2.1 percent in September 2020, compared with market estimates of a 1.8 percent drop.

Moving ahead today, the important events to watch:

Eurozone - European council meeting: GMT - All-day

US – Initial jobless claims: GMT – 12.30

US – Crude oil Inventories: GMT – 14.30

Coronavirus update:

Worldwide, the number of people infected with the coronavirus surpassed 38.5M. The Czech Republic reported 9,544 new Covid-19 cases on Wednesday, it's highest one-day tally since the pandemic started. Germany posts a record daily increase in coronavirus infections, adding 6,638 cases and bringing the total to 341,223.

Technical Outlook

The currency pair trading lower as investors remained concerned about the negative impact of the continued surge in coronavirus cases and fresh lockdown restrictions in parts of Europe.


The important levels to watch for today: Support- 1.1700 and 1.1670 Resistance- 1.1730 and 1.1770.

GOLD: The yellow metal trades below $1900, any break below $1890 the next downside levels to watch $1880 and 1860. On the upper side, the immediate resistance around $1906.


The important levels to watch for today: Support- 1890 and 1880 Resistance- 1906 and 1918.

Quote of the day: Cut your losses quickly, without hesitation – Jesse Livermore.

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