• Pfizer hopes for October vaccine approval
• US PMI readings above expectations
US indices are trading slightly higher with the tech-heavy Nasdaq notching another record high as both US services and manufacturing PMI data came stronger than expected. Today’s figures showed that US private sector activity grew by the most for 1-1/2 years. Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs. Investors also welcomed the news that Pfizer’s vaccine is set for regulatory review in October. Meanwhile, US-China tensions continue to simmer as Trump administration on Thursday declined to acknowledge any plans to meet with China over the Phase One trade deal.
WTI crude futures fell as much as 2.5% to below $41.5 a barrel and Brent dropped 2.6% to below $43.74 after the latest weak PMI data from Europe, declining crude oil imports from India and renewed Covid-19 restrictions raised concerns regarding the demand recovery. Moreover internal report by the OPEC+ showed it expects oil demand to fall by 9.1 million bpd this year, 100,000 bpd above the previous estimates. However, if the second wave of infections spreads to China, India, Europe and the US in the second half of the year, demand could decline even by 11.2 million bpd. Besides that that some OPEC members will be forced to reduce production by 2.31 million barrels per day to make up for their recent oversupply.
Precious metals were under pressure today for a third consecutive session, with commodity experts pointing to a resurgence in the U.S. dollar as the most likely culprit for bullion’s recent downtrend. Gold prices fell as much as 0.9% to around $1,933 an ounce while silver dropped 3.5% to around $26 an ounce.
USDCAD – pair bounced of the 1.3234 resistance, which is additionally strengthened by 200 MA (red line) and is currently testing major support at 1.32 level. Should downbeat moods prevail, next support at 1.3137 may come into play. 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.
