DAILY MARKET REPORT - Wed, Nov 18, 2020

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US Dollar Index dropped back to near the crucial support zone. The Index extends lower on Wednesday following the weaker-than-expected US retail sales figures. The greenback started this week on a Positive note but later retreated back to lower in response to optimistic news regarding the development of a vaccine against coronavirus.

While US Fed Chair Jerome Powell said on Tuesday, "Using all of our tools to support the recovery for as long as it takes until the job is well and truly done,"

EQUITIES

Wall Street ended lower on Tuesday as investors remain concerned on worsening coronavirus conditions in the US and the delay in the release of a US COVID-19 aid package. On the earnings front, Target (NYSE: TGT) and NVIDIA (NASDAQ: NVDA) will report last quarter financial results today.

OIL

Crude oil prices rebounded from the early session lows. The oil slipped in the Asian session after API data showed a larger-than-expected rise in US inventories.

CURRENCIES

In the currency market, the British pound climbed to near the previous week high lifted by strong UK inflation figures and the currency pair also supported by the news that a deal between the UK and the EU within the framework of Brexit may be concluded next week.

GOLD

Gold price trading slightly lower on Wednesday following the positive comments from the FED members. Federal Reserve Vice Chairman Richard Clarida said the chances of economic recovery in the US have increased, thanks to the successful testing of candidates by Moderna and Pfizer Inc.

Economic Outlook

On the data front, Japan's Exports declined by only 0.2% YoY after falling by 4.9% YoY in the previous month and imports decreased by 13.3 per cent. On the other hand, US retail sales were up by 0.3% from September 2020 and came below the expectations of 0.5% and lower than the previous month of 1.6%.

On the stimulus front, U.S. Senate Majority Leader Mitch McConnell says he is open to a $500 billion package aimed at alleviating economic pain from the coronavirus pandemic.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 13.30

CANADA – Consumer price index: GMT – 13.30

US –Crude oil Inventories: GMT – 15.30

Coronavirus update:

As of Tuesday, there have been more than 54.5 million positive COVID-19 tests across the world, according to a running tally by Johns Hopkins University. The United States has passed 11.2 million confirmed cases, with over 247,000 deaths from COVID-19, the highest numbers in the world. Turkey reported 3,819 new patients and 103 deaths on Tuesday, taking the confirmed death toll since the start of the outbreak to 11,704. The country is re-introducing a series of restrictions, including partial weekend lockdowns.

Technical Outlook

EUR/USD:
The currency pair hovers near the short-term resistance level 1.1890. If the bullish momentum continues the next upside to watch 1.1910 and 1.1930. On the downside, the immediate support at 1.1850.

eurusd


The important levels to watch for today: Support- 1.1850 and 1.1810 Resistance- 1.1890 and 1.1930.



GOLD: The precious metal trading below $1880 level. Overall the momentum remained bearish throughout the European session.

gold neww


The important levels to watch for today: Support- 1874 and 1860 Resistance- 1885 and 1900.

Quote of the day: When purchasing depressed stock in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt- Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-211
 
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