Most stock markets declined on Thursday, continuing the trend of previous sessions. Investors are worried about the continuing rise in the incidence of COVID-19 and the number of initial claims for unemployment benefits in the US.
Fears of a bigger blow to the economy are becoming more and more credible: New York City is closing municipal schools for the first time since spring, which poses great risks to the city’s economy, forcing large numbers of teachers and staff to stop working.
The number of Americans who submitted initial applications for government unemployment benefits last week rose to 742,000 as fears increased that the rise in the number of COVID-19 diseases will further slow down the recovery of American labour. Economists were waiting for applications to drop to 707,000.
The single European currency brought a surprise. For the first time in 7 years, it has outpaced the US dollar in global settlements (trade). The euro’s share in international payments in October was 37.82%. The share of the US dollar decreased to 37.64%.
The third and fourth places were occupied by the English pound sterling and the Japanese yen, the fifth place was occupied by the Canadian dollar, which beat the Chinese yuan, SWIFT reported.
Of course, this is a strong positive signal for the EURO. However, it should not be overestimated. The fact is that the US dollar is still the world’s main funding currency. And it is American bonds, which are denominated in US dollars, that receive the world’s largest financial flows.
As we noted in one of the last newsletters, gold refuses to grow. Moreover, it is even slowly declining. We suggest that you take a closer look at the daily chart. There is a strong support zone around $1,850 per troy ounce. The price has already tested it several times and bounced upwards. If the level is broken through, it is simply an abyss below, without the support levels visible on the daily chart.
What awaits us today?
02.30 Decision by the People’s Bank of China on interest rate
08.00 UK retail sales for October
14.30 Retail sales in Canada for September
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