• 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: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
