US dollar hits fresh year high on Wednesday against a basket of most major currencies. The safe-haven currency climbed to above 92 on Tuesday after Treasury Secretary Yellen said the Biden administration was considering boosting the corporate taxes from the current 21% to 28% as the economy recovers from COVID-19.
Global stocks extend losses on Wednesday on concerns about the latest round of lockdowns across Europe. On the other hand, WHO said the weekly global death toll from the virus is rising again following six weeks of declines. On Wall Street overnight, the Dow Jones Industrial Average fell 0.94%, the S&P 500 lost 0.76% and the Nasdaq Composite dropped 1.12%.
Crude Oil prices slightly rebounded from the previous session losses. On Tuesday, the oil price fell to a new weekly low over escalating concerns about weakening demand due to a new wave of coronavirus infections across Europe. Meanwhile, the API data showed stocks of crude oil in the US increased by 2.927 million barrels in the week ended March 19th, compared with market expectations of a 0.9 million decline.
In the currency market, the British pound plunged to a new session low following weaker-than-expected Inflation data. The data showed UK inflation rate dropped to 0.4% in February of 2021 from 0.7% in January.
The gold price trading sideways and the overall momentum remains bearish this week after Greenback surged to new highs.
On the data front, German and French manufacturing data came better-than-expected. France Manufacturing PMI rose to 58.8 in March of 2021 from 56.1 in the previous month while the German manufacturing PMI came in at 66.6 this month vs. 60.8 expected
Moving ahead today, the important events to watch:
US – Durable goods orders: GMT – 12.30
US – Manufacturing PMI: GMT – 13.45
US – EIA Crude oil inventories: GMT – 14.30
Worldwide, more than 123.4 million people have been confirmed infected and more than 2.72 million have died. The United States has confirmed over 29.8 million cases and has had more than 542,900 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair continuously trading weaker against the dollar. At the time of writing, the pair slightly rebounded from the early session lows boosted by the upbeat German and French economic data.
The important levels to watch for today: Support- 1.1810 and 1.1770 Resistance- 1.1850 and 1.1880.
GOLD: The precious metal currently trading at $1732. On the upper side, the immediate resistance to watch $1740/46.
The important levels to watch for today: Support- 1726 and 1718 Resistance- 1740 and 1746.
Quote of the day: And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets – Martin Feldstein.
Read more- https://gulfbrokers.com/en/daily-market-report-271