DAILY MARKET REPORT - Wednesday, June 10, 2020

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Investors and traders will closely monitor the Fed statement later today that might add some volatility to the market. The Federal Open Market Committee (FOMC) will release FOMC Economic Projections and policy statement at 18.00 GMT followed by a Fed Chair Jerome Powell's press conference half an hour later. The Fed is expected to leave interest rates unchanged at the end of a two-day meeting.

EQUITIES

Asian markets traded mostly higher on Wednesday as investors await the outcome of the U.S. Federal Open Market Committee (FOMC) meeting. Hong Kong stocks ended the session higher, with the benchmark Hang Seng Index rising 1.1% to settle at 25057.22, the highest closing level in nearly three months. On Tuesday, Wall Street ended mostly lower but the NASDAQ climbed to a new record high by passing the vaunted 10,000-point mark for the first time.

OIL

Crude Oil prices dropped to the session low after the API reported US crude inventories unexpectedly rose 8.4 million barrels in the week to June 5th and the commodity also under pressure after the comments from Saudi Arabia that it won’t extend voluntary cuts in production.

CURRENCIES

Commodity currencies like the Australian dollar and New Zealand dollar recovered from the previous session losses and trading close to the week high. Overall the momentum remained bullish during the Asian session. The US dollar trading lower ahead of FED meeting as policymakers of the Fed are expected to unveil their first economic projections for this year after the pandemic hit the US economy.

GOLD

The yellow metal price trading steady above $1720 during the European trading session, the price boosted by geopolitical risks and a weak US dollar.

Economic Outlook

During the Asian session, the economic data revealed that the annual inflation rate in China fell to 2.4% in May from 3.3% in April and less than the market consensus of 2.7%. While China's producer prices also declined by 3.7% in May, posting the steepest deflation rate since March 2016.

Moving ahead today, the important events to watch:

  • US CPI and Core CPI – 12.30 GMT

  • US crude oil inventories report – 14.30 GMT

  • FOMC rate decision and economic projections – 18.00 GMT

  • FOMC press conference – 18.30 GMT
Coronavirus Update:

The number of confirmed cases of coronavirus around the world surpassed 7 million, of which more than 405 thousand died and over 3 million recovered. The US currently has the highest number of COVID-19 patients around the globe, reporting over 2 million cases so far.

Technical Outlook

EUR/USD:
The pair is back above 1.1350 and if the upside momentum continues the next important level to watch 1.1464.

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The important levels to watch for today: Support- 1.1320 and 1.1240 Resistance- 1.1380 and 1.1470.

AUD/USD: The currency pair recovered from the previous session low of 0.6900 and currently trading below 0.7000 levels.

audusd


The important levels to watch for today: Support- 0.6900 and 0.6850 Resistance- 0.7010 and 0.7050.


Quote of the day: An investor without investment objectives is like a traveller without a destination.

Read more- https://gulfbrokers.com/en/daily-market-report-102
 
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