The UK announced the third national lockdown which is expected to last until mid-February and the lockdown will become law in the early hours of Wednesday. The UK reported 59,000 new cases on Monday - the seventh day in a row it has recorded more than 50,000 cases. Scottish First Minister Nicola Sturgeon also ordered a lockdown on Monday.
"Our hospitals are under more pressure from COVID than at any time since the start of the pandemic,"- UK PM Boris Johnson said.
Global stocks ended lower on Monday after governments across the US, Europe and UK are extending lockdowns to try to slow the spread of the virus. US equity indices dropped more than 1% on the first trading day of the new year. The Dow Jones Industrial Average fell more than 700 points. The S&P 500 and the Nasdaq Composite both dropped 1.5%.
Crude oil prices trading lower on Tuesday after the first day of OPEC meeting ended without any conclusion, the negotiations about production cuts will continue on Tuesday. On the other hand, the recent sell-off also fuelled by a spike in coronavirus cases in several parts of the world.
In the currency market, the Australian dollar and New Zealand dollar recovered from the previous session losses. Meanwhile, the Euro trading unchanged on Tuesday.
Gold price trading strong for the second consecutive day supported by the weaker dollar and uncertainty over US Senate elections
On the data front, The US manufacturing PMI increased to 57.1 in December versus a preliminary reading of 56.5 and compared to 56.7 in November.
Moving ahead to the North American session, the investors and traders should closely monitor the important economic data - US ISM Manufacturing PMI data.
Worldwide, the number of COVID-19 cases reported is more than 85.3 million. The United States has reported 20.6 million confirmed cases and has had more than 351,000 deaths from COVID-19.
Dollar Index: The USD retreated from the previous session high after the index failed to break above 90 levels. At the time of writing, DXY trading below 89.70.
The important levels to watch for today: Support- 89.60 and 89.30 Resistance- 90 and 90.40.
GOLD: The precious metal trading near the previous day highs and the momentum remains bullish throughout the European session. The important levels to watch today $1932 and $1950.
The important levels to watch for today: Support- 1932 and 1926 Resistance- 1945 and 1950.
Quote of the day: Trading decisions should be made as unemotionally as possible – Richard Dennis.
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