The French industrial productions for July
of 3.8% came in lower than expected of 5.0% and lower than the prior print of
13.0%, while the Italian figures of 7.4% came in better than expected of 3.5%
but lower than the prior read of 8.2%.
Nonetheless, these released numbers have
had a very limited effect on the Euro price against major currencies.
Equities
Reports
of AstraZeneca may resume the Coronavirus vaccine trials next week given the
markets on Wednesday new hopes and led global stock markets higher reversing
the effect of the previous
day selloff.
Stock Market Change % +2.6% +2.3% +3.6% +1.2% +3.0% +2.4 % +2.5%
Currencies
The
US Dollar retreated on Wednesday for the first time since late August and
closed the daily candlestick in the red with a near 0.5% loss. Therefore, the US
Dollar index may fall
towards 92.34.
On
the other hand, EUR/USD recovered
some of its losses and rallied above the 1.1800- handle. Investors' eyes will
be on the ECB press conference at 4:30 PM where president Lagarde may comment
on the accelerated rise of the Euro exchange price.
GBP/USD printed on Wednesday a six-week low at 1.2884, as the
market started to price a no-deal Brexit risk. However, we have seen a similar
situation last year and then both sides ended up with an exit deal. The same
thing may happen, and both could strike a trade agreement eventually. Yet, the
question is: what kind of deal they would cut?
Commodities
Crude
Oil price retreated on Thursday due to expectations of an increase in last week’s
US oil inventories sparking concerns of a surge in oil supply with slower
recovery in global demand as the Coronavirus cases rising worldwide.
Crude oil price declined on Thursday by 0.7% and has found support
around $37.28, while Brent oil slipped by 0.5% then steadied above $40.00
a barrel. Investors will follow the US stockpile numbers due tonight.
Gold
rebounded after multiple failures in closing below $1,921 indicating that
XAU/USD may rally towards $2,015.
Looking Ahead
Today,
eyes will be on the ECB rate decision at 3:45 PM (UAE time) then the ECB press,
and the initial US Jobless claims conference at 4:30 and by 7:00 PM markets
will be waiting for the US oil inventories.
