On Tuesday, crude oil prices ended at their lowest since June and Brent closed at $39.78 per barrel, while WTI futures ended at $36.76 per barrel. Oil slipped amid fears that rising COVID-19 cases and fears OPEC will begin picking up production soon after an output cut put in place to support the market earlier in the year.
Asian stocks traded lower on Wednesday following the big tech sell-off in the US overnight. The tech-heavy Nasdaq Composite Index, which slumped more than 4%, the S&P 500 fell 2.8%, and the Dow Jones Industrial Average lost 2.3%. Tesla shares plunged 21.06% to suffer its biggest daily percentage drop after it was excluded from a group of companies being added to the S&P 500.
Crude Oil prices slightly recovered during the European session after the worst days sell-off on Tuesday. Investors now await the weekly API report on US crude oil stockpiles due later in the day.
In the currency market, the US dollar edges lower against a basket of six major rivals. The EURO slipped to fresh monthly lows as investors cautiously waiting for the ECB's monetary policy decision and the press conference of its president Christine Lagarde.
The gold price trading above $1930 on Wednesday, the yellow metal price rebounded from the previous session lows supported by mounting coronavirus cases in the world and US-China tensions deepened.
On the data front, China reported on its consumer price index and the producer price index for August, which rose 2.4% and fell 2%, respectively y/y, in line with analysts’ expectations.
The British Pound trading under pressure after UK Prime Minister Boris Johnson said that Britain would accept a no-deal Brexit if negotiations make no progress by mid-October. Moving ahead to the North American session, The UK government is expected to publish updated Brexit legislation later in the day intending to ensure Northern Ireland can trade freely with Britain. The bill is expected to be published around 11:30 GMT and will be followed by UK PM Johnson's press conference at 15:00 GMT.
Moving ahead today, the important events to watch:
Canada – BOC interest rate decision and statement: GMT– 14.00
US – Jolts job openings: GMT – 14.00
The number of people infected with the coronavirus across the world hit 27.5 million, of which at least 897 thousand people have died and 18.5 million have recovered, according to data released by the Johns Hopkins University.
XAU/USD: Currently the gold price supported at $1910 levels, any break below this level will open the doors to $1900 and $1880. On the other upper side, the immediate resistance at $1940 and $1955.
The important levels to watch for today: Support- 1920 and 1900 Resistance- 1940 and 1955.
GBP/USD: The British pound slightly rebounded from the early session lows, at the time of writing the currency pair hovers near the 1.3150 level.
The important levels to watch for today: Support- 1.2910 and 1.2850 Resistance- 1.3000 and 1.3050.
Quote of the day: Never stop investing, never stop improving, and never stop doing something new- Bob Parsons.
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