Daily Market Report by GulfBrokers 2020-2021

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EUR/USD bounced from the crucial support area 1.1750 after positive comments from the ECB policymakers. At the time of writing, the pair trading above 1.1815. If the bullish momentum continues the next upside levels to watch 1.1850 and 1.1880.

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Today’s session in Europe will see most its attention turns toward important ECB Monetary Policy Statement which is set to be released at 11:45 GMT. Along with this release will see the ECB president Christine Lagarde Conference 45-minutes after at 12:30. The ECB kept its main refinancing rate unchanged at 0% in July and pledged to buy up to €1.35 trillion worth of debt through June 2021.

EQUITIES

Global stocks trading higher on Thursday following a rebound on Wall Street. European shares opened higher ahead of ECB monetary policy decision. Japanese shares ended higher on Thursday as better-than-expected machinery orders data. Japan Machinery Orders climbed 6.3% in July on a seasonally adjusted basis after dropping 7.6% in June.

OIL

Crude oil prices slightly retreated from the early session highs after the API reported the inventories increased by 3 million barrels in the week to September 4th, missing market expectations of 1,4 million barrels of a draw.

CURRENCIES

In the currency market, EUR/USD trading steadily above 1.18 ahead of the key European Central Bank (ECB) monetary policy decision. On Wednesday, the pair bounced from the crucial support area 1.1750 after positive comments from the ECB policymakers.

GOLD

The gold price trading between $1940-$1950 on Thursday ahead of European central bank meeting and US initial weekly jobless claims data.

Economic Outlook

On Wednesday, The Bank of Canada left its key rate unchanged at 0.25% at its September policy meeting. The Bank is also continuing its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds.

Moving ahead today, the important events to watch:

Eurozone – ECB Interest Rate Decision and Monetary Policy Statement: GMT– 11.45

Eurozone – ECB press conference: GMT – 12.30


US – Initial jobless claims: GMT – 12.30

US – producer price index: GMT – 12.30

Coronavirus update:

The U.S. has more than 6.3 million confirmed cases and more than 190,000 deaths, according to Johns Hopkins University data. Globally, there are almost 27.6 million cases and more than 900,000 fatalities. While British PM Johnson announced new coronavirus restrictions including a ban in all social gatherings of more than six people from September 14th.

Technical Outlook

XAU/USD:
Gold price trading below the $1950 resistance level on Thursday. Overall, the momentum remained bearish throughout the day.

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The important levels to watch for today: Support- 1935 and 1920 Resistance- 1955 and 1965.



EUR/USD: The currency pair trading above 1.1810 during the European session supported by the weaker dollar.

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The important levels to watch for today: Support- 1.1790 and 1.1760 Resistance- 1.1840 and 1.1880.

Quote of the day: You learn nothing from trading if you think you are right all the time.

Read more- https://gulfbrokers.com/en/daily-market-report-163
 
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As per the recent update, the British biotech firm AstraZeneca (LON: AZN) would resume its trials for the experimental COVID-19 vaccine next week. On Tuesday, Pharmaceutical giant AstraZeneca suspended the late-stage trials after an illness in a study subject in Britain. The patient was reportedly suffering from neurological symptoms associated with a rare spinal inflammatory disorder called transverse myelitis. The experimental vaccine being developed with the University of Oxford against the novel coronavirus.

Meanwhile, AstraZeneca’s CEO Pascal Soriot said today, “we should know before year-end whether the potential COVID-19 vaccine will protect people". “Data from the sick and symptomatic volunteer will be sent to an independent safety and health committee and the company will either continue or complete the trials, depending on the outcome” he added. Earlier AstraZeneca planned to have its vaccine available by the first half of 2021 and was considered one of the most advanced in the world by the World Health Organization (WHO).

AstraZeneca’s vaccine, called AZD1222, uses genetic material from the coronavirus with a modified adenovirus. The company has already agreed to supply close to three billion doses to governments across the globe - more than any other vaccine project.

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The shares of AstraZeneca slightly rebounded from the previous session lows. On Wednesday, the stock slipped after the drugmaker said it has paused late-stage trials of its coronavirus vaccine.


Read more- https://gulfbrokers.com/en/astrazeneca-covid-19-vaccine-trial-would-resume-shortly
 
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UK Gross domestic product expanded 6.6% in July from June; the data published by the Office for National Statistics showed Friday. While the numbers came in slightly lower than the 6.7% expected by analysts, and significantly lower than the 8.7% growth seen in June. On the other hand, Industrial production in the United Kingdom surged 5.2% in July of 2020, marking the third straight month of growth after a record plunge in April and beating the market forecast of 4%.

“Education grew strongly as some children returned to school, while pubs, campsites and hairdressers all saw notable improvements. Car sales exceeded pre-crisis levels for the first time with showrooms having a particularly busy time,” said ONS director of economic statistics Darren Morgan.

EQUITIES

Global stocks and US stock futures trading in negative territory on Friday after U.S. Senate Republicans failed to advance a new coronavirus stimulus bill.

OIL

Crude oil prices trading lower on Friday following the latest EIA data showed that US oil inventories rose by 2.03 million barrels in the week to September 4th, the first weekly rise in seven weeks

CURRENCIES

In the currency market, the British pound plunged after the EU threatened to pursue legal action against the UK over breach of the Brexit withdrawal agreement if it does not drop the so-called Internal Market Bill.

GOLD

The gold price hovers near the support $1940 area ahead of US inflation data which is set to be released at 12:30 GMT.

Economic Outlook

On Thursday, ECB left interest rates unchanged as expected and kept the bond-buying program intact. The central bank sees the Eurozone economy to shrink 8% in 2020, less than earlier estimates of an 8.7% contraction. ECB president Christine Lagarde said the ECB is closely monitoring the impact of the exchange rate on inflation risks within the region.

On the data front, US Labor Department released the latest Initial Jobless Claims figures which remained at the same level of 884K, which turned out to be worse than the market's expectations, which expected a decrease to 846K.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 28.1 million, of which at least 909 thousand people have died and 18.9 million have recovered, according to data released by the Johns Hopkins University. The United States is the leading country in terms of confirmed novel coronavirus cases (6 395 603), followed by India (4 465 863) and Brazil (4 197 889).

Technical Outlook

XAU/USD: Gold price retreated from the previous session high, on Thursday, during the North American session the yellow metal climbed to $1965.

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The important levels to watch for today: Support- 1926 and 1910 Resistance- 1955 and 1965.

EUR/USD: The currency pair slightly rebounded from the early session lows, at the time of writing the pair trading above 1.1840.

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The important levels to watch for today: Support- 1.1800 and 1.1770 Resistance- 1.1880 and 1.1915.

Quote of the day: Only buy something that you would be perfectly happy to hold if the market shut down for 10 years – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-164
 
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The e-commerce pet-care retailer Chewy Inc. (NYSE: CHWY) reported better-than-expected second-quarter results on Thursday. The strong results are boosted by the pet adoptions have also been spiking during this Coronavirus pandemic period. The company revenue climbed 47% to $1.7 billion from $1.15 billion a year ago.

  • Earnings per share (EPS) -$.8 vs. -$.15 expected
  • Revenue $1.7 billion vs. $1.69 billion expected
“We are proud of our teams, who continued to execute under difficult, pandemic-related circumstances, while again setting new records for both net sales growth and new customer additions” -stated Sumit Singh, CEO of Chewy.

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Chewy shares gained more than 100% since the beginning of the year. On Thursday, the stock dropped around 3% and closed at 59.69 and during the after-hours trading, the shares fell another 1% after pet food retailer reported new sales per active customer totalled $356 for the second quarter, which is below the estimate of $365.


Read more- https://gulfbrokers.com/en/chewy-q2-results-beat-wall-street-estimates
 
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