EUR/USD trading below 1.12 ahead of the key European Central Bank (ECB) monetary policy decision. On Wednesday the pair surged to a three-month high of 1.1257. The market participants anticipating the European Central Bank is expected to boost its 750-billion-euro bond-buying programme by a further 500 billion euros.
Global shares slipped on Thursday on worries about US-China tensions after the Trump administration barred Chinese passenger planes from flying to the US from June 16th. On Wednesday Wall Street ended higher, the S&P 500 booked its longest winning streak since February and posted its largest 50-day rally in history, while the Dow closed Wednesday’s session 2% higher.
Oil prices slide on Thursday due to uncertainty about supply cuts by major producers and EIA data released Wednesday suggested demand in the US is not recovering as fast as expected.
The Australian dollar trading slightly weaker on Thursday after the retail sales in Australia tumbled 17.7 per cent month-over-month in April of 2020. The Pound fell to a session low of 1.2400 after data showed the UK new car sales market suffered its worse May month ever due to the coronavirus pandemic.
Gold price recovered from the early session low. On Wednesday the yellow metal tanked below $1690 on hopes of a recovery from a coronavirus-driven economic slump as countries around the world continued to ease lockdown restrictions.
During the European session, the Eurozone’s retail trade tumbled 11.7 per cent from a month earlier in April 2020, the largest decline since comparable series began in 1995. On Wednesday, the US ADP Non-Farm Employment Change for May was recorded as 2.76M job loss in comparison to 9.0M of expectations.
Moving ahead today, the important events to watch:
ECB interest rate decision – 11.45 GMT
ECB press conference – 12.30 GMT
US initial jobless claims report- 12.30 GMT
Coronavirus cases have crossed 6.5 million marks worldwide and 386,073 deaths while 3, 164,317 have recovered. The US remains the worst-hit country by the virus with over 1.85 million cases, while the death toll in the country exceeded 107,100.
GOLD: The gold price trading steady above $1700 ahead of US jobless claims report and ECB meeting.
The important levels to watch for today: Support- $1700 and $1690 Resistance- $1718 and $1727.
EUR/USD: The pair trading slightly lower against the dollar supported by 1.1180, any break below this level will open 1.1130 and 1.1100. On the other side, the immediate resistance around 1.1260 – the previous session high.
The important levels to watch for today: Support- 1.1180 and 1.1130 Resistance- 1.1235 and 1.1290.
Quote of the day: Having a trading discipline is the beginning, keeping discipline is the process, and staying disciplined is a success.
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