Today’s Waves – 4th August
Gold hits $2,000 as Beirut Explosion Sends Commodities Higher
A large explosion in the Lebanese capital, Beirut today sent gold over $2,000, as other commodities also rose.
The news was broken earlier today of an explosion taking place in the port district of the capital, with some additional reports of a second blast.
With no clarity on the cause of the explosion beyond it being flammable materials at the port, commodity prices rocketed. Gold finally breaking the highly coveted $2,000 level as a result.
Crude oil rose to as high as in the $41.70 region after starting the day close to $39, Natural gas also rallied to its highest level since 5th May.
Sterling Rises as UK Factory Output Grows
Today, it was the turn of the UK to digest the ISM manufacturing data, and like the U.S. and EU yesterday, the numbers show growth.
British manufacturing in the month of July grew at its fastest pace since 2017, as factories reopened after the coronavirus lockdown was eased.
The numbers came to a reading of 53.3, which is the highest level in 3 years.
After trading close to the support of 1.296, GBPUSD rallied to a day’s high of 1.306 after the figure was released.
Amazon get Approved to Buy Deliveroo
After a long-contested battle with UK regulators, Amazon has finally received approval to take a 17% stake in food delivery company Deliveroo.
Talks surrounding the deal stalled in May of 2019, as the UK’s competition authority wanted to ensure that the deal would not lead to a monopolisation of the food tech space within the UK.
Amazon shares rose on the news, ending two days of drops.
Quote of the day: “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.”Peter Lynch
XAUUAD: The bull of the day title once again belongs to gold, as the metal finally breaches the $2,000 level on news of a still unexplained explosion in Beirut.
USDJPY: After hitting a high of 106.19 today, USDJPY saw weakness which resulted in the pair slipping to a low of 105.72 on Tuesday.