DAILY MARKET REPORT - Tuesday, Nov 24, 2020

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EURO rebounded from the previous session lows supported by the weaker US dollar and strong GDP data. The GDP grew by 8.5% in the last quarter, compared to a preliminary estimate of 8.2%. Meanwhile, Germany Ifo Business Climate dropped to 90.7 in November, from a 92.5 in the previous month but above market expectations of 90.1.

EQUITIES

Global stocks trading higher boosted by another coronavirus vaccine posted promising data. On Monday, AstraZeneca (NASDAQ: AZN) became the third pharmaceutical firm to report its effective coronavirus vaccine, after positive news from US biotech firms Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA).

OIL

Crude oil prices extended gains overnight fuelled by the hopes of a recovery on the oil demand outlook. Moving ahead, the investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the commodity currencies like the Australian dollar and New Zealand dollar extends higher following the positive sentiment in the equity markets and oil prices.

GOLD

Gold price sell-off continues on Tuesday. The precious metal trading below 4-month low during the European session on hopes of coronavirus vaccine developments.

Economic Outlook

On the data front, the US manufacturing index increased from 53.4 in October to 56.7 in November, beating expectations of a decline to 53. While the Flash Services PMI increased to 57.7, against the expected 55.8.

On Monday, the US General Services Administration acknowledged Joe Biden as the apparent winner of the presidential election. The Trump administration has officially commenced the transition process to U.S. President-elect Joe Biden. While Joe Biden has chosen former Federal Reserve Chair Janet Yellen to serve as treasury secretary.

Coronavirus update:

More than 1.3 million people have died from the disease worldwide. Global cases exceed 59 million. The United States has passed 12.2 million confirmed cases, with more than 256,000 deaths from COVID-19, the highest totals in the world. France, the third-worst affected country in the world, reported 4,452 new Covid-19 cases on Monday, the lowest daily increase since September 28th.

Technical Outlook

EUR/USD:
The currency pair rebounded back to above 1.1880 after better-than-expected German economic data.

eurusd


The important levels to watch for today: Support- 1.1850 and 1.1800 Resistance- 1.1900 and 1.1930.

GOLD: The gold price remains under pressure. At the time of writing, the yellow metal trading near the support area of $1810.

gold neww


The important levels to watch for today: Support- 1810 and 1800 Resistance- 1820 and 1830.

Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich

Read more- https://gulfbrokers.com/en/daily-market-report-215
 
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