• Gold again below $2000 /oz
European indices finished today's session in green. Maersk's, often seen as a bellwether for global trade, provided positive demand outlook in the third quarter, but warned of a “significant decline” across the year. Meanwhile Britain together with London's Heathrow Airport is preparing a COVID-19 testing plan to help reduce the number of days travelers have to spend in quarantine. However, concerns over a second wave of infections weighed on market sentiment. Finland will re-impose travel restrictions for several European countries starting August 24th. DAX 30 rose 0.9%,, CAC40 added 0.8% and FTSE100 finished 0.6% higher.
US indices erased earlier gains after FOMC Minutes. Earlier in the session, both S&P500 and Nasdaq hit record highs as Apple became the first publicly listed U.S. company to cross $2 trillion in market capitalization. Fed officials said the coronavirus crisis would weigh heavily on economic activity, employment, and inflation and was posing considerable risks to the economic outlook over the medium term while the Fed policy is going to remain extremely accommodative. After publication of today's FOMC Minutes we could observe increased volatility on the USD, gold and US indices. Meanwhile, investors continued to monitor stimulus negotiations after House Speaker Nancy Pelosi said the Democrats were willing to cut their stimulus proposal. Also tensions between US and China increased after President Trump said that he has postponed trade talks and does not want to speak with China right now.
Crude oil price fell slightly today. Recent data from the EIA showed US crude inventories dropped by 1.632 barrels per day, in line with the API report released on Tuesday. Investors are also awaiting news from OPEC meeting and allies including Russia, which is set to review adherence to a previously agreed deal on oil output cuts.
Gold plunged more than 3% to a one-week low on Wednesday as the dollar rebounded further from two-year lows after publication of FOMC minutes. Silver pulled back from a one-week high below $27 an ounce on Wednesday, tracking gold prices.
Several macroeconomic reports will be published tomorrow. ECB Monetary Policy Meeting Accounts will be the key release of the European session while US Weekly Jobless Claims and Philadelphia Fed Index will be on watch during US trading hours.
USDCHF - currency pair bounced of the 0.9010 support level and rally. Should upbeat moods prevail, resistance at 0.9179 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.
