By Deepta Bolaky
The performance of global stocks was mixed on Tuesday. European stocks advanced higher on the back of strong ZEW Economic Sentiment surveys. Wall Street struggled following the standoff by Congress over the stimulus relief package. Investors are worried that the delay in agreeing on the coronavirus relief package will cause more damage to the US economy.
Major US equity indices ended in negative territory. The S&P 500 finished in negative territory after seven-day consecutive gains:
In the FX space, the US dollar staged a comeback despite a slow start to the trading day. To the exception of the Canadian dollar, major currencies were weaker against the greenback.
On the economic front, we are seeing further signs of improvement in economic data:
Crude oil prices were unable to hold on to Monday’s gains among the geopolitical tensions and a rising US dollar. On the data front, API report which shows a decline of -4.4M in crude oil stock in the week of August 07 but was lower from the previous -8.587M. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $41.60 and $44.60, respectively. The EIA report will be the highlight on Wednesday.
In the pandemic-induced environment and escalating geopolitical tensions, gold has been rallying. On Tuesday, the precious retreated from record highs dragged mostly by the renewed strength in the US dollar. The XAUUSD pair experienced the biggest daily drop in years. We expect traders to continue to monitor the main risk factors – US stimulus package, virus woes and the US-China tech war for fresh trading impetus. As of writing, the XAUUSD pair is currently consolidating around the $1,900 mark.
Source: GO MT4
By Deepta Bolaky
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|Thursday, 13 August 2020
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