DAILY MARKET REPORT Tuesday, June 02, 2020

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The US dollar continues to trade lower on Tuesday as the market sentiment experiences some pressure over mounting protests across US cities following George Floyd’s death. Moving ahead to the North American session the investors will likely monitor how current protests will impact the economy as states try to reopen while making it more difficult to control the spread of the coronavirus.

EQUITIES

Several Asian markets including Tokyo and Hong Kong shares closed higher Tuesday on continued hopes for global economies to recover. The UK 100 added 1% to trade above 6,200 on Tuesday, having touched its highest level since March 9th, amid prospects of the easing of lockdowns across the world.

OIL

Brent crude rose more than 2% to trade above $39 a barrel as OPEC+ producers are expected to extend their output cut of 9.7 million barrels per day into July or August. The investors focus shifts to the US weekly crude stocks data due to be published by the American Petroleum Institute (API).

CURRENCIES

The EURUSD climbed above 1.1180 on Tuesday after US dollar faced additional selling pressure following the release of the ISM manufacturing PMI data during the previous session which revealed a weaker than expected reading. The commodity currencies again rose strong, the Australian dollar rallied to 0.6870 and the New Zealand dollar climbed to 0.6315.

GOLD

Gold prices slipped on Tuesday as hopes for a gradual recovery in economic growth rose following the easing of lockdowns. The yellow metal price has gained in the previous three sessions and hit their highest on Monday since May 21.

Economic Outlook

The RBA has left interest rates on hold at 0.25 per cent. RBA said the economy is going through a very difficult period and is experiencing the biggest economic contraction since the 1930s. The Australian dollar climbed back to above 4-month high 0.6800 after the announcement. RBA Governor Lowe said that it was possible the downturn would be shallower than previously expected but policy support would likely be required for some time.

Meanwhile, The fourth round of trade talks between the UK and the EU starts today and London has until July 1st to ask for an extension to the transition period, which ends in December.

Coronavirus Update:

More than six million cases of the novel coronavirus have been officially recorded worldwide. The United States is the worst-hit country, with 1,760,740 cases and 103,472 deaths. On Friday Moderna announced that it had started the phase 2 trials of its experimental coronavirus vaccine. In its phase 2 trial, 600 adult patients in 2 age groups had been given a high or low dose.

Technical Outlook

GOLD:
The yellow metal trading slightly weaker on Tuesday after placing a high of $1744.58.

audusd


The important levels to watch for today: Support- $1727 and $1710 Resistance- $1745 and $1760.

EUR/USD: The pair trading strong above 1.1150, the important levels to watch today 1.1200.

cruse


The important levels to watch for today: Support- 1.1110 and 1.1070 Resistance- 1.12 and 1.1235.

Quote of the day: You learn nothing from trading if you think you are right all the time.

Read the detailed report- https://gulfbrokers.com/en/daily-market-report-96
 
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