• US Crude Oil stocks rise unexpectedly
Wall Street indices are also trading higher. US continuing claims fell for the first time since the coronavirus pandemic started, an encouraging sign the American job market bottomed out. This completely overshadowed the fact that the upwardly revised GDP reading showed 5% contraction for the first quarter. It also seems that investors once again ignored growing tensions between the Beijing and Washington after China’s National People's Congress officially approved the new national security law for Hong Kong. The Trump administration is preparing a variety of measures, including targeted sanctions, new tariffs and further restrictions on Chinese companies, according to U.S. officials and people familiar with the discussions. However some analysts believe that escalating tensions could threaten stock market's recovery. "I would prefer that the market not go up quite as fast because the sharper it moves higher, the more vulnerable it becomes to a pullback," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas. President Donald Trump pledged to take action regarding Hong Kong situation by the end of the week. Apart from that he is also planning to introduce an executive order designed to make it easier to sue social media companies such as Twitter, days after the company placed a fact check label on two of his tweets. During today’s session Dow Jones rose 0.70 %, S&P 500 climbed 0.90 % and Nasdaq is trading 0.97% higher.
There are no major data prints scheduled for release tomorrow therefore trading is likely to be dominated by headline news. KOF Economic Barometer and CPI data from the Euro zone will be the key releases of the European session while Canada's GDP figures and Michigan Consumer Sentiment Index will be on watch during US trading hours. Last but not least, Fed Chair Powell is scheduled top speak.
NZDUSD - managed to break above major resistance level at 0.6154. Should upbeat moods prevail, next resistance at 0.6364 may come into play. However, before this happens, the currency pair will have to deal with the 200 MA (red line). Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
