EUR/USD climbed to a fresh year high of 1.1545 on Tuesday. The currency gained after the EU leaders reached a deal on a coronavirus recovery package worth €750 billion and the pair also supported by the weaker dollar. The dollar index dropped to its lowest since early March on Wednesday during the Asian session.
Global stocks trading mixed on Wednesday and US stock futures trading near the session low on doubts over the timing of a fresh US stimulus program and the other reason, Beijing said earlier today that the Trump administration had abruptly told it to close its Houston consulate.
Crude oil price dropped to the session low on Wednesday after the American Petroleum Institute (API) reported an unexpected increase in inventories of 7.544 million barrels for the week compared with expectations for a draw of 2.1 million.
The commodities currencies the Australian dollar and New Zealand dollar surged to the fresh session high on Wednesday. During the European session, both the currency pairs retreated from the highs after negative comments from China’s foreign ministry.
The gold price rose to multi-year high on Wednesday supported by weak USD. The precious metal price also boosted by the comments from President Donald Trump, he warned that the coronavirus pandemic would get worse before it got better in the US.
On the data front, New Zealand's Global Dairy Trade Price Index declined by 0.7% after rising by 8.3% last month. Analysts had expected growth of 3.9%. Meanwhile, Australian preliminary retail sales rose by 2.4% in June, lower than in May but up 8.2% on the year.
On the earnings calendar, the beverage and snack maker Coca - Cola (NYSE: KO) reported better-than-expected Q2 profit. While the global sales dropped 28% in Q2. $KO surged 3% in after-hours trading.
The important earnings to watch today: Tesla (NASDAQ: TSLA) and Microsoft (NASDAQ: MSFT)
The number of people infected with the coronavirus across the world hit 14.95 million, of which at least 616 thousand people have died, according to Johns Hopkins. The United States has the highest number of confirmed cases at 3.97 million, followed by Brazil with 2.17 million. Russia reported 5,842 new cases of coronavirus on Tuesday, pushing its total infection tally to 7,83,328, the fourth-highest number of cases in the world. India reported 37,148 cases and 587 deaths in the last 24 hours, taking the total number of coronavirus infections to 11,55,191.
XAU/USD: The yellow metal surged above $1860 on Wednesday and at the time writing the price hovers around $1850.
The important levels to watch for today: Support- 1843 and 1830 Resistance- 1855 and 1865.
EUR/USD: This currency pair dropped back to below 1.1510 on Wednesday after the pair climbed to 1.1545 during the early session.
The important levels to watch for today: Support- 1.15 and 1.1470 Resistance- 1.1540 and 1.1570.
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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