DAILY MARKET REPORT - Wednesday, Sep 16, 2020

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The two days FOMC meeting that began Tuesday and concludes with a statement and a press conference due later today. The central bank scheduled to issue its policy statement at 18.00 GMT. The investors will closely watch the press conference of U.S. Federal Reserve chair Jerome Powell for clues on how long the interest rates could remain at the present low levels and further clarification on the new average inflation target.

EQUITIES

US stock futures trading higher on Wednesday ahead of US Monthly Retail Sales figures and FOMC monetary policy update. Japanese shares traded higher as investors are waiting for the parliamentary approval of Yoshihide Suga as next prime minister later today. On Wall Street, U.S. package delivery giant FedEx (NYSE: FDX) reported strong quarterly earnings on Tuesday and the stock climbed more than 8% in after-hours trading.

OIL

Crude oil prices surged higher on Wednesday as Hurricane Sally disrupted Gulf of Mexico energy production., causing the shutdown of over 25% of American offshore oil and gas production. Meanwhile, API reported the inventories dropped by 9.5 million barrels last week, while markets expected a 1.3 million barrels build.

CURRENCIES

In the currency market, the Dollar index trading slightly lower on Wednesday ahead of FOMC latest policy decision. On Tuesday, the Index surged to above 93 zones after the US Empire State Manufacturing Index for September rose to 17.0, against the projected 6.2.

GOLD

The gold price rebounded back to above $1960 from the previous session lows and trading volatile ahead of Fed interest rate decision and press conference.

Economic Outlook

On the US-China front, on Tuesday, the World Trade Organization ruled that the tariffs imposed on Chinese products by the US in 2018, which triggered the trade war between the two mega economies, were inconsistent with international trade rules.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

CANADA – Consumer price index: GMT – 12.30

US – Crude oil inventories: GMT – 14.30

US – Fed rate decision and statement: GMT – 18.00

US – Fed chair Jerome Powell conference: GMT – 18.30

Coronavirus update:

The number of people infected with the coronavirus across the world hit 29.5 million, of which at least 935 thousand people have died and 20 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, Chinese CDC chief biosafety expert confirmed that the ordinary Chinese people would be able to get the COVID-19 vaccine as early as November or December, as the Phase 3 clinical trials went very smoothly.

Technical Outlook

GBP/USD:
The British pound climbed back to above 1.29 area after better-than-expected UK consumer inflation figures for August.

cruse


The important levels to watch for today: Support- 1.2970 and 1.3010 Resistance- 1.2870 and 1.2840.



Dollar Index: The greenback retreated from the previous session highs and trading near to the support area of $92.80/70.

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The important levels to watch for today: Support- 92.70 and 92.50 Resistance- 93.10 and 93.50.

Quote of the day: You make most of your money in a bear market, you just don’t realize it at the time- Shelby Cullom Davis.

Read more- https://gulfbrokers.com/en/daily-market-report-167
 
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