DAILY MARKET REPORT - Wed, Dec 02, 2020

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EURO climbed to the highest level in two and a half years on Wednesday supported by the weaker dollar. The US dollar struggling to find an upside momentum as the risk sentiment in global markets improves over-optimism related to vaccine developments.

EQUITIES

Asian shares traded higher on Wednesday as investors cheered the news about the Pfizer and BioNtech have applied to the European medicines’ agency for conditional marketing authorization of their coronavirus vaccine. The European Medicines Agency revealed that it could conclude its assessment of Pfizer and Moderna’s vaccines by December 29 and January 12, respectively. While US futures trading unchanged after Federal Reserve Chairman Jerome Powell said that the outlook for the United States economy is extraordinarily uncertain, due to the rising numbers of coronavirus case.

OIL

Crude oil prices trading slightly lower on Wednesday after the two days OPEC meeting delayed as the investors eagerly waiting for the fresh updates from the OPEC members. On the other hand, the API inventory data showed the inventory increased by 4.1 million barrels last week.

CURRENCIES

In the currency market, the British pound retreated back below 1.3360 following the negative comments European Commission's Barnier. He said EU envoys that three main issues still unresolved, deal hangs in the balance.

GOLD

Gold prices trading steady on Wednesday. The recent bullish move supported by the news about a new stimulus bill. On Tuesday, US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin will restart negotiations over a new stimulus package proposed by members of both parties.

Economic Outlook

On the data front, Australia’s gross domestic product increased by 3.3 per cent in the third quarter, the Australian Bureau of Statistics said on Wednesday. While Reserve Bank of Australia Governor Philip Lowe said that the economy was likely to experience a run of years with unemployment too high and wage increases and inflation too low.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13.15

US – EIA Crude inventory report: GMT – 15.30

Coronavirus update:

Worldwide, more than 63.4 million people have been confirmed infected and more than 1.47 million have died, according to Johns Hopkins University. The United States has passed 13.5 million confirmed cases, with more than 268,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.20. During the Asian session, the pair reached a fresh session high of 1.2086.
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The important levels to watch for today: Support- 1.2040 and 1.20 Resistance- 1.2090 and 1.2150.

GOLD: The yellow metal trading above the short-term resistance $1820 lifted by the weaker dollar. Overall, the momentum remains bullish throughout the European session.
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The important levels to watch for today: Support- 1820 and 1816 Resistance- 1826 and 1832.

Quote of the day: In stock trading, if you are good, you are right six times out of ten. You are never going to be right nine times out of ten – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-220
 
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