UK GDP slightly rebounded by just 1.8% in May from a record plunge 20.4% in April as lockdown measures eased. Meantime, both manufacturing and industrial production numbers for May showed a decent rebound, with recoveries to 8.4% and 6% respectively. UK Chancellor Rishi Sunak said: "Today’s figures underline the scale of the challenge we face. I know people are worried about the security of their jobs and incomes. “Our clear plan invests up to £30 billion in significant and targeted support to put people’s livelihoods at the centre of our national renewal as we emerge through the other side of this crisis.”
Global stocks trading lower on Tuesday as concerns about the negative impact of US-China political tensions and the rise in Covid-19 cases. On Monday, Tesla shares jumped 13% to $1,744.11 and later the stock closed 3% lower. The stock has surged in nine of the past 10 sessions, rising nearly 30% in the past three trading days alone.
Crude oil price slightly recovered from the early losses ahead of OPEC meeting later this week. OPEC and allies, including Russia, are expected to ease production cuts to 7.7 million BPD, down from a record cut of 9.7 million BPD for May through June.
The pound trading bearish against the dollar and Euro for the second consecutive day. The GBP/USD dropped to near 1.2500 during the European session after the mixed economic data.
Gold price trading below the psychological level $1800 on Tuesday weighed down by a stronger dollar.
US Banks earnings will kick-off today as the latest quarterly numbers from JPMorgan, Wells Fargo and Citigroup will release its second-quarter results on Tuesday before the bell.
On the data front, China reported its trade data for June. Imports to China unexpectedly grew by 2.7% and economists were expecting -10%. Exports came in at 0.5%, and the consensus estimate was -1.5%, while the May reading was -3.3%. While the German ZEW headline numbers for July showed that the Economic Sentiment Index came in at 59.3 versus 60.0 expectations and 63.4 last.
On the earnings calendar, PepsiCo’s second-quarter earnings beat the Wall Street expectations. The company reported earnings on Monday before the bell
The number of people infected with the coronavirus across the world hit 13.11 million, of which at least 573 thousand people have died, according to Johns Hopkins. The US, the world’s worst-affected country, now has a total of more than 3.3 million cases and 135,000 deaths.
XAU/USD: The yellow metal price at the decision point. Watching $1790 and $1818 for this week.
The important levels to watch for today: Support- 1792 and 1780 Resistance- 1806 and 1818.
EUR/USD: The currency pair ignored the negative German economic data. At the time of writing the pair trading above 1.1350.
The important levels to watch for today: Support- 1.1320 and 1.1280 Resistance- 1.1380 and 1.1420.
Quote of the day: Wealth is only a benefit of the game of money. If you win, the money will be there- J. Paul Getty.