The New Zealand dollar climbed to a new fresh year high of 0.8900 on Wednesday after the Reserve Bank of New Zealand launched additional stimulus and the positive comments from Governor Adrian Orr. The central bank held the official cash rate (OCR) steady at 0.25 per cent and Governor Adrian Orr said the rates will remain unchanged at 0.25% until next year. The governor also said the policymakers expect the economy to fall into recession early next year,
Wall Street ended mixed on Tuesday, the Dow Jones closed in positive territory while Nasdaq Composite and S&P 500 ended slightly lower as investors concerns about surging COVID-19 cases in the United States.
Crude oil prices trading strong on Wednesday lifted by the latest reports suggesting that OPEC+ is considering delaying the production cut agreement as well as hopes for a COVID-19 vaccine. On the other hand, the American Petroleum Institute reported a draw of 5.147 million barrels for the week ending November 6.
In the currency market, the British pound continues to trade volatile. The currency pair rose to a new weekly high of 1.3310 during the European session after the positive comments from UK government officials about the post-Brexit trade agreement with the European Union.
The gold price closed slightly higher on Tuesday supported by the continued rise in the number of fresh cases of coronavirus across the US and Europe.
On the data front, US JOLTS Job Openings increased by 84,000 from a month earlier to 6.4 million in September 2020, missing market expectations of 6.5 million. The German economic sentiment contracted to 39 in November from 56.1 in the previous month, while the assessment of the current situation came in at -64.3, down from -59.5.
Moving ahead to the North American session, the investors and traders will closely monitor the speech from ECB President Christine Lagarde. On Tuesday, the European Parliament and EU governments agreed the details of the 2021-2027 EU budget, is a crucial step for the activation of the bloc’s 1.8 trillion-euro recovery package.
Worldwide, more than 50 million people have been confirmed infected and more than 1.26 million have died, according to Johns Hopkins University. The United States has passed 10.1 million confirmed cases, with over 238,000 deaths from COVID-19, the highest numbers in the world. Meanwhile, France reported 22,180 new infections over the last 24 hours and 472 new deaths.
EUR/USD: The currency pair remained under pressure after the US dollar gained bullish momentum following the news about the vaccine.
The important levels to watch for today: Support- 1.1760 and 1.1710 Resistance- 1.1850 and 1.1890.
GOLD: The yellow metal hovers near the $1880 area on Wednesday after it dropped more than 5% in a single day on Monday.
The important levels to watch for today: Support- 1860 and 1848 Resistance- 1885 and 1892.
Quote of the day: Do not save what is left after spending but spend what is left after saving – Warren Buffet.
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