View attachment christopher-burns-Wiu3w-99tNg-unsplash.jpgl
During European session on Monday, the official data showed German industrial production plunged a record 17.9% in April amid factories shutdowns due to the coronavirus pandemic. The 17.9% decline reported by the Economy Ministry followed an 8.9% drop in March when Germany started shutting down.


Japanese shares edged higher on Monday, the optimism remained positive as Japan’s parliament begins deliberating a second supplementary budget to fund part of a fresh $1.1 trillion stimulus package. While European stocks traded lower on Monday after German industrial production reported worse than expected.


Crude oil prices trading steady on Monday after major producers agreed to extend a deal on record output cuts to the end of July. On Monday Oil traders and investors looking forward to the OPEC+ presser expected to be released at 10:00 AM GMT.


In the currency markets, US dollar trading slightly weaker on Monday, the currency pair rebounded on Friday from 11-week supported by upbeat US monthly jobs report. Meanwhile, the Pound trading session low of 1.2640 after the pair surged to 3- month high last week. The UK Prime Minister Boris Johnson is expected to update cabinet ministers on Tuesday on the next stage of lifting coronavirus restrictions.


On Friday the yellow metal price dropped to near $1670 after better than expected US NFP report. The price rebounded on Monday after China’s trade data reported on Sunday a decline in exports and imports during the month of May and a slower-than-expected 0.6% contraction in Japanese GDP in the first quarter versus -0.9%.

Economic Outlook

The NFP data revealed on Friday that the US economy added 2.5 million new nonfarm jobs in May, versus 8 million job losses expected by analysts and unemployment rate fell from 14.7% to 13.3% (expected 19.7 %). Over the weekend, China’s trade data was released, which revealed a decline in exports and imports during the month of May.

This week Investors will likely keep a look at the economic releases which includes FOMC rate decision and press conference, US crude oil inventory report, US weekly jobless claims, Euro-zone and UK GDP etc.

Coronavirus Update:

Coronavirus cases have crossed 7-million mark worldwide with 405,272 deaths. The United States continues to remain the worst-hit country with positive cases toll at 1,988,544 including 112,096 deaths. Total cases in Saudi Arabia exceeded 100,000 on Sunday as the kingdom struggles to get to grips with a rise in new infections over the past 10 days.

Technical Outlook

The gold price slightly recovered from the last week low and trading below $1700 on Monday.


The important levels to watch for today: Support- $1680 and $1665 Resistance- $1700 and $1708.

AUD/USD: The pair trading just under 0.70 and entering into a consolidation phase. Any break above 0.70 which would open doors towards 0.7030 and 0.7055. On the other side, the first important support to watch 0.6930 and a breach below this level will open 0.6850.


The important levels to watch for today: Support- 0.6930 and 0.69 Resistance- 0.7030 and 0.7055.

Quote of the day: The market does not know you exist. You can do nothing to influence it, you can only control your behaviour- Alexander Elder.

Read more- https://gulfbrokers.com/en/daily-market-report-100