DAILY MARKET REPORT - Thursday, Sep 24, 2020

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The US dollar index surged to two months high on Thursday. At the time writing, the index trades steady above 94.40. Moving ahead to the North American session, the investors and traders will closely monitor the latest US home sales and weekly jobless claims data.

EQUITIES

Global equity markets are under pressure amid fears that new lockdowns in the EU would hurt the global economic recovery and uncertainty about new U.S. fiscal stimulus. On Wednesday, the S&P 500 fell 2.4% erasing an earlier gain while Dow Jones dropped by 1.92%, and Nasdaq tumbled 3.02%.

OIL


Crude oil prices trading steady on Thursday supported by better-than-expected EIA inventories data. The inventories fell for the second straight week, by 1.6 million barrels for the week ended September 18th.

CURRENCIES

In the currency market, the EUR/USD slipped to new weekly lows after weaker-than-expected German economic data.

GOLD

The Gold price hits fresh two months low on Thursday, during the European session the yellow metal fell below $1850 zone.

Economic Outlook

On the data front, German IFO Business Climate Index came in at 93.4 in September, stronger than last month's 92.6 while missing the consensus estimates pointing to a reading of 93.8.

On Wednesday, Federal Reserve Chair Jerome Powell noted that despite progress in rebounding from the coronavirus economic downturn, "there is a long way to go." He also said the economy needs more government support, but a new stimulus package might not be approved soon with the presidential election just six weeks away.

Moving ahead today, the important events to watch:

US - Initial jobless claims: GMT – 12.30

US -New Home Sales: GMT – 14.00

UK - BoE’s Governor Bailey Speech: GMT – 14.00

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 31.8 million, of which at least 976 thousand people have died and 21.9 million have recovered, according to data released by the Johns Hopkins University. On Tuesday, the United States passed 200,000 deaths as a result of the pandemic, according to Johns Hopkins University. Meanwhile, Johnson & Johnson on Wednesday announced that it has begun the third phase of clinical trials for its experimental vaccine against the coronavirus.

Technical Outlook

GBP/USD:
The British pound trading steady above 1.27 on Thursday. As of writing, the pair is currently trading around 1.2750 level.

euraud


The important levels to watch for today: Support- 1.2710 and 1.2680 Resistance- 1.2780 and 1.2820.

GOLD: The yellow metal hovers near the $1850 demand zone, any break above the $1861 area the next upside to watching $1870 then $1878. On the other hand, immediate support around $1843.

audusd


The important levels to watch for today: Support- 1843 and 1835 Resistance- 1861 and 1870.

Quote of the day: I could trade without knowing the name of the market – Richard Dennis.

Read more- https://gulfbrokers.com/en/daily-market-report-173
 
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