DAILY MARKET REPORT - Wed, Dec 16, 2020

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Today the traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. The central bank scheduled to issue its policy statement at 19.00 GMT. The Fed is expected to leave interest rates unchanged at the end of a two-day meeting.

EQUITIES

Wall Street recovered the previous session losses and closed higher on Tuesday on renewed hopes that Washington will roll out new fiscal stimulus before 2021. U.S. House Speaker Nancy Pelosi has scheduled a meeting with other congressional leaders to discuss a relief package. The new plan includes $748 billion in spending for programs that are popular for both sides, including unemployment benefits and small business aid.

OIL

Crude oil price trading steady on Wednesday despite weaker-than-expected API inventory data. The data showed in the US the crude inventories rose by 1.97 million barrels in the week ended December 11th of 2020, following a 1.14 million rise in the previous week.

CURRENCIES

In the currency market, the dollar index plunged to fresh monthly lows on Wednesday. On Tuesday, the Index extends lower to below 90.40 after the US Empire State Manufacturing Index for December fell to 4.90, against the projected 6.90.

GOLD

The gold price trading steady above $1850 on Wednesday ahead of US central bank interest rate decision and statement. The overall, momentum remains bullish throughout the day.

Economic Outlook

On the data front, the UK unemployment rate figures came 4.9%, compared to 4.8 per cent in the previous period and below forecasts of 5.1 per cent.

On the post-Brexit front, the British pound climbed back to near the Monday highs after a reporter from BBC Newsnight tweeted about a ‘Big buzz in the last hour’ among Conservative MPs, saying the UK is heading towards a Brexit trade deal with the EU.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

CANADA – Consumer price index: GMT – 13.30

US – Crude oil inventories: GMT – 15.30

US – Fed rate decision and statement: GMT – 19.00

US – Fed chair Jerome Powell conference: GMT – 19.30

Coronavirus update:

Worldwide, more than 73 million people have been confirmed infected and more than 1.6 million have died, according to Johns Hopkins University. The United States has passed 16.5 million confirmed cases, with more than 302,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading strong ahead of Eurozone and German PMI data. The downside looks solid as traders should continue to accumulate on dips towards 1.2040-1.2000 in the near term.

eurusd


The important levels to watch for today: Support- 1.2100 and 1.2060 Resistance- 1.2180 and 1.2210.

GOLD: The gold price trading rose fresh weekly high of $1858 on Wednesday. If the bullish momentum continues the next upside levels to watch $1866 and $1875.

gold neww


The important levels to watch for today: Support- 1850 and 1842 Resistance- 1868 and 1875.

Quote of the day: We don’t have to be smarter than the best. We have to be more disciplined than the rest – Warrant Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-229
 
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