As economies try to reopen globally social distancing to be permanent for a while, at least until a vaccine is developed. According to the recent study, social distancing can limit the chance of catching coronavirus to fewer than 3%. Keeping one metre apart reduces the risk of transmission to 2.6%, while a two-metre gap decreases the chance of infection by a further 50%. Countries like France, the UK, Singapore, Hong Kong and Saudi Arabia already introduced new social distancing rules.
Asian shares rose Wednesday after Wall Street extended its gains for the third straight day, driven by optimism over economies reopening from shutdowns to stem the coronavirus pandemic. South Korean stocks rose for a third straight session, with the benchmark Kospi closing 1.1% higher at 2087.19.
Oil prices rose, extending a recent recovery with investors anticipating that oil producers led by Saudi Arabia and Russia will extend supply curbs in response to the energy industry’s crisis.
The EURUSD edged up, lifted by positive news around the EU recovery plan and Germany announced a 100-billion-euro rescue package to fight the economic impact of the coronavirus. The British pound rose to fresh month high as market participants grew more optimistic about trade negotiations between the U.K. and the European Union.
Gold fell for a second straight session on Wednesday as stocks jumped on hopes for further stimulus and optimism about an economic recovery, dampening demand for the safe-haven metal.
Germany's unemployment rate jumped to 6.3% from 5.8% the previous month due to the on-going coronavirus pandemic, this is the highest level since late 2015. The number of German residents out of work rose by 238,000 in May vs. 200,000 expected, data showed on Wednesday. Earlier during the Asian session, Australian data showed GDP growth down 0.3% in the first quarter, compared to a 0.5% rise in the fourth quarter.
Moving ahead today, the important events to watch:
U.S. ADP non-farm employment report – 12.15 GMT
U.S. ISM non-manufacturing PMI – 14.00 GMT
Bank of Canada Interest rate decision- 14.00 GMT
US crude oil inventory report- 14.30 GMT
Coronavirus cases have crossed 6.4 million marks worldwide, taking positive patients toll to 6,477,966 with 382,188 deaths while 3,009,648 have recovered. Brazil's death toll rose by 1,001 in 24 hours, the third time in four days it has come in over 1,000. The country's health ministry reported 20,803 new cases on Friday, bringing the total to 330,890 confirmed cases.
GOLD: The yellow metal price trading below $1720 ahead of ADP employment report. On Tuesday the Gold price dropped more than 1%.
The important levels to watch for today: Support- $1710 and $1695 Resistance- $1728 and $1735.
EUR/USD: The pair climbed to near 3 – month high $1.1228 on Wednesday ahead of ECB meeting tomorrow, its highest level since March 16th.
The important levels to watch for today: Support- 1.1190 and 1.1130 Resistance- 1.1240 and 1.1300.
Quote of the day: The fundamental law of investing is the uncertainty of the future- Peter Bernstein.
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