DAILY MARKET REPORT - Thursday, Sep 17, 2020

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The British pound trading slightly lower on Thursday ahead of Bank of England monetary policy decision later today. The market participants expect the BoE to leave its interest rate unchanged as the bank is in a ‘wait-and-see’ mode. It is also projected to maintain the bond-buying scheme at £745 billion.

EQUITIES

Wall Street ended lower on Wednesday after dovish monetary policy announcement by the Fed and weaker-than-expected retail sales numbers. On the other hand, New Zealand shares edge lower after the economy contracted by 12.4% during the last quarter as compared to the consensus estimates pointing to a reading of -13.3%.

OIL


Crude oil prices rebounded from the early session losses. On Wednesday, the Oil price surged higher after the latest EIA data showed an unexpected drop in U.S. crude inventories in the week ended September 11.

CURRENCIES

In the currency market, the Japanese Yen trading strong on Thursday following comments from BOJ, the policymakers said the country's economy started to bounce back from the coronavirus crisis but it "has remained in a severe situation."

GOLD

The gold price retreated from the previous session high after the dollar climbed higher supported by a less dovish Fed statement.

Economic Outlook

On the data front, Australian Bureau of Statistics announced the unemployment report, the jobless rate in Australia came in at a seasonally adjusted 6.8% in August and the economy added 111,000 jobs last month.

On Wednesday, the Federal Reserve announced its widely expected decision to kept to 0.25%. The US central bank announced that it will keep interest rates near zero for years until a recovery is firmly in place. Fed does not expect inflation of 2% until the end of 2023. The decline in GDP by the end of 2020 will be approximately 3.7%, which is much better than the June forecasts of 6.5%.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11.00

US – Initial jobless claims: GMT – 12.30

US - Philadelphia Fed Manufacturing Survey: GMT – 12.30

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 29.8 million, of which at least 940 thousand people have died and 20.3 million have recovered, according to data released by the Johns Hopkins University. The United Kingdom recorded 3,991 new positive cases of Covid-19, compared with 3,105 the day before, official statistics showed. India reported its highest daily increase in coronavirus infections on Thursday, adding 97,894 new cases in the past 24 hours.

Technical Outlook

USD/JPY:
The currency pair trades near the support zone of $104.70/50; the currency pair slips to fresh monthly low after positive comments from BOJ policymakers.

audusd


The important levels to watch for today: Support- 104.50 and 104.20 Resistance- 105 and 105.30.

Dollar Index: The greenback rebounded from the support area $92.70, at the time of writing the Index trading at 93.20.

cruse


The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.55 and 94.

Quote of the day: The whole secret to winning and losing in the stock market is to lose the least amount possible when you are not right- William O’Neil.

Read more- https://gulfbrokers.com/en/daily-market-report-168
 
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