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US Dollar hits a fresh 16-month high ahead of one of the most awaited economic events of the week, Minutes from the Federal Reserve's November meeting and US GDP figures.
EQUITIES
Wall Street ended higher on Tuesday boosted by the rebound in crude oil and better-than-expected economic data. The upside momentum is also supported by the better-than-expected US manufacturing PMI data. The US Manufacturing PMI increased by 59.1 in November from a 10-month low of 58.4 in October.
OIL
Crude oil prices holding the previous session gains. Oil prices bounced on Tuesday after the US announced a 50 million barrels release of oil from the Strategic Petroleum Reserves of which 32 million barrels will be exchanged over the next several months
CURRENCIES
In the currency market, the Euro remained under pressure against the major currency pairs following the release of weaker-than-expected German IFO business climate data. The British pound slightly recovered from the previous session losses while the currency pair struggled to break above 1.3400 as the investors widely expect that the BOE will hike interest rates during the next monthly meeting.
GOLD
Gold price stays below the $1800 psychological level ahead of US FOMC minutes. Overall, momentum remains bearish as the US dollar hovers near its highest in 16 months.
Economic Outlook
On the data front, the Reserve Bank of Australia increased the official cash rate by 0.25 per cent to 0.75 per cent. RBNZ anticipate raising 75 basis points in the next three meetings to leave the cash rate (OCR) at 1.5 per cent by June 2022.
"Further removal of monetary policy stimulus is expected over time given the medium-term outlook for inflation and employment" – RBNZ policy committee said.
Moving ahead today, the important events to watch:
US – GDP: GMT – 13.30
US – Durable good orders: GMT – 13.30
US – FOMC meeting minutes: GMT – 19.00
Coronavirus update:
Worldwide, more than 257 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 46.9 million cases and has had more than 765,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook
EURUSD: Considering the recently strong bearish momentum, the currency pair is trading near the critical demand zone on the weekly time frame. So, there may be the chance the pair can find strong buyers below this year's low 1.1220.
The important levels to watch for today: Support- 1.1230 and 1.1200 Resistance- 1.1270 and 1.1300.
GOLD: On the daily time frame, the gold is currently supported at $1780, and the resistance is around $1810. On the upper side, the long-term buyers should wait for a daily close above the $1815.
The important levels to watch for today: Support- 1780 and 1772 Resistance- 1797 and 1805.
Quote of the day - In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it - Peter Lynch.
Read more- https://gulfbrokers.com/en/daily-market-report-408