By Deepta Bolaky
Global stocks started the week on a mixed note following the escalating tensions between the US and China over tech. Ahead of the scheduled talks, the brewing new cold tech war is sapping optimism. European stocks bounced from lows lifted mostly but banks and oil shares.
In the US share market, the attention was on the US-China jitters and the second round of stimulus after talks with Congress broke. During the weekend, President Trump issued controversial executive orders which are deemed as illegal by the Democrats:
In the FX space, major currencies were mixed against the US dollar in the European and US session amid a muted calendar. The Canadian dollar emerged as the best-performer on the back of stronger commodity prices
The US dollar index which tracks the performance of the US dollar against a basket of currencies ended slightly higher on Monday.
The greenback appeared to have found some support on the signing of the controversial executive orders which are being challenged and deemed as illegal by the Democrats.
A combination of bullish weekly oil reports and improving economic data are providing support to the oil industry while the fears of a second outbreak are forcing traders to remain cautious. Crude oil prices edged higher on Monday. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $42.08 and $45.04, respectively.
In the pandemic-induced environment and escalating geopolitical tensions, gold is shining bright. Last week, the precious metal rose above the $2,000 mark for the first time and reached a high of $2,072.25. Investors are hedging with safe-haven assets. Gold seesawed in a tight range in the last two sessions.
As of writing, the XAUUSD pair is currently consolidating in a range around the $2,020 mark.
Source: GO MT4
By Deepta Bolaky
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|Wednesday, 12 August 2020
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