Market Reports by GulfBrokers - 2023

Global markets ended last week on mixed after Jan US job market numbers exceeded market forecasts that fuelled expectations that the US Fed will continue to raise interest rates aggressively to combat inflation. Total nonfarm payroll employment increased by 517,000 in January, and the unemployment rate edged down to 3.4 percent. Economists had estimated that 185,000 jobs were added last month.

Moving ahead, this week Investors and traders should shift their emphasis from economic data to the Q4 earnings season and the latest comments from the FED policymakers after the release of strong US jobs data last week. On the other hand, the important economic events to watch are the series of inflation numbers from China and Germany, the RBA decision and the UK GDP.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Walt Disney, Uber, Lyft, PayPal and Pinterest.

GOLD

The precious metal plunged almost $100 in the last two trading sessions. Gold price extended losses on Friday after a stronger-than-expected US jobs report that fueled the bets that the Fed continue to raise rates, which diminishes the appeal of assets that bear no interest. The dollar’s advance has also pressured the metal's weakness. This week, gold investors largely focused on Federal Reserve Chair Jerome Powell's speech for insights into the central bank's rate hike path.



For this week, $1,858 is the immediate support level, followed by $1,850. If the metal breaks below the $1,850, the slump will quickly extend toward the $1840/35 mark. On the upper side, gold is likely to find immediate resistance at $1,874 then $1880, any break above the $1,880 level could lead the prices of the precious metal towards the next resistance levels of $1,886 and $1,895.

DOLLAR INDEX

The U.S. dollar has appreciated against most currencies last week—the dollar index rose to its highest level in three weeks. The greenback rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve. For the dollar, no major data is expected on the economic calendar this week, although US Michigan consumer sentiment is scheduled later this week will be important to watch.



The technical scenario is absolutely bullish after last week's bullish sentiment. While considering the recently bullish momentum the USD may find strong resistance this week above 103.50. On the downside, any meaningful pullback now seems to find some support near the 102.40 zones, below which the slide could further get extended towards the 102.20/00 regions.

EURUSD

EURUSD failed to extend the rally above 1.1000 and retreat back to below 1.0800 despite the European Central Bank's promises of another interest rate hike in March. ECB President Christine Lagarde said - "In view of the underlying inflation pressures, we intend to raise interest rates by another 50 basis points at our next monetary policy meeting in March and we will then evaluate the subsequent path of our monetary policy." The next monthly update on German inflation arrives on Thursday. That's the next piece of major economic news that could alter the ECB's thinking on interest rates.



From a technical perspective, The 1.0760 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 1.0730 and 1.0710 support zone. On the upper side, in case the pair manages to settle above 1.0850, it will regain upside momentum and head towards the next resistance level at 1.0900 and 1.0930.

DOW JONES

US equities ended mixed following the release of the most awaited robust US employment report and weaker-than-expected big tech's fourth-quarter earnings results. Alphabet, Amazon and Apple have reported lower-than-expected earnings for the December quarter, dragged down by dwindling digital advertising revenues. This week, the Dow traders will now turn their attention to the comments from FED policymakers and Q4 earnings results.



This week, the key resistance for Dow near 34,400 breaks this and closes above this resistance level then expects the market to zoom up to 34,800 and 35,000. On the downside, 33,500 will act as an initial cushion, any break below this area will open doors to 33,100 and 32,900.

Check out the original article with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-66
 
Shares of the home-goods retailer Bed Bath & Beyond (NASDAQ: BBBY) retreats almost 40% in after-hours trading on Monday after spiking more than 100% in regular trading. The meme stock ended up 92% at $5.86. On Monday, the company said it was planning to raise some $1 billion through an offering of preferred stock and warrants in a move to stave off bankruptcy.

During the last month, the company reports a much wider-than-expected quarterly loss and the retailer also announced that it would close 150 stores and lay off more workers. Bed Bath & Beyond appointed Holly Etlin, a bankruptcy expert, as interim chief financial officer.

EQUITIES

US stocks futures trades flat on Tuesday as investors await the speech by Fed Chair Jerome Powell at the Economic Club of Washington D.C. later in the day. On the earnings part, the Pictorial social media company Pinterest (NYSE: PINS) stock fell more than 2% in after-hours trading after the company failed to impress investors with the fourth-quarter earnings results.

OIL

Crude oil futures held the previous session gains despite the strong US dollar after IEA Executive Director Fatih Birol said that China’s economy could be poised for a stronger-than-anticipated rebound that will boost demand for crude. Goldman Sachs also raised its forecast for Chinese oil demand in the fourth quarter of 2023 to 16 million bpd, up 400,000 bpd from an earlier estimate.

CURRENCIES

In the currency market, the EURUSD hits a fresh monthly low of 1.0700 on Tuesday Morning. The bearish sentiment was fueled following the release of disappointing German industrial data. The data showed German industrial production fell 3.1% the month in December, worse than market forecasts of a 0.7% decline.

GOLD

The precious metal recouped some of the declines of the previous week's losses. As of this writing, the gold price trades above $1873. However, the metal is expected to remain under pressure in the coming days as investors expect that the US Fed will continue to hike interest rates in coming meetings to cool inflation.

Economic Outlook

On the data front, the Reserve Bank of Australia announced its ninth straight monthly rise on Tuesday Morning. The central bank increased its key interest rate by 25 bps to 3.35% and held out the prospect of further rate hikes to cool inflation. "Inflation is expected to decline this year due to both global factors and slower growth in domestic demand," RBA Governor Philip Lowe said.

Moving ahead today, the important events to watch:

US – Trade balance: GMT – 13.30

US – FED chair Jerome Powell speech: GMT – 17:40

Coronavirus update:

Worldwide, more than 676 million people have been confirmed infected and more than 6.77 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
Technically the overall trend still looks bearish, and the next immediate support is 1.0680 then 1.0650. On the upper side, 1.0760 is the key resistance zones to watch for today, if the pair breaks and closes above this area then the next supply level to watch is around 1.0800/10.



The important levels to watch for today: Support- 1.0680 and 1.0650 Resistance- 1.0760 and 1.0800.

GOLD: The precious metal remains under pressure a clear breakdown of the support at $1860 could open space for further declines while only recovery to $1,900 would reverse the short-term negative trend.



The important levels to watch for today: Support- 1865 and 1858 Resistance- 1880 and 1886.

Quote of the day - My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks - Bruce Kovner.
Check out the original article here - https://gulfbrokers.com/en/daily-market-report-612
 
Stock markets have largely fallen in 2022 while the stocks started this year on a positive note in hopes that cooling inflation may allow the Fed to take it easier on rates. However, markets still face a lot of headwinds like rising interest rates and an impending recession, especially after a strong US employment report raised fears that the US central bank could keep hiking interest rates to combat inflation. So, investors should look for stocks which are more resilient and can withstand difficult times.

This article would explore 5 stocks you should add to your watchlist now and why these are attractive options.

PayPal​

It’s not a name that needs much in the way of an introduction. PayPal (NASDAQ: PYPL), a pioneer in the digital payments industry, the stock regained upside momentum in recent weeks after it formed a double-bottom below $70. This week could be an important week for the company. The reason is, PayPal will release its fourth-quarter results on Thursday, Feb. 9. The company is expected to earn $1.20 a share on sales of $7.38 billion.



The stock started this week on a bearish note after Raymond James downgraded the stock to market performance from outperform. However, despite the last two sessions' price drop, we might continue to see PayPal’s share price continue to grow. Therefore, the stock will likely continue rising as buyers target the next key resistance level at $100 and then $123. A break below the support level at $70 will invalidate the bullish view.

AMD​

It’s another name that doesn’t need any description — add chip maker Advanced Micro Devices (NASDAQ: AMD) to your list of stocks to watch. The company had a tough last year, but the share price has staged a strong recovery in the past few weeks. Last month, the company reported its fourth-quarter financial results. AMD Q4 earnings results beat EPS and revenue expectations, the company's fourth-quarter revenue rose 16% to $5.60 billion.



As of this writing, the $AMD is down more than 2%. We can see that the stock well rebounded after touching the lower trendline. So, if the stock holds above the trend line there are chances the stock may eventually rise back to above $100 in the short term.

Boeing​

With Airline and travel stocks leading the way in major markets, Boeing (NYSE: BA) is a must-stock add to your watchlist now. Boeing has been in a strong bullish comeback since November 2022 as investors continue focusing on the positive developments in the Airline industry and strong demand for commercial aircraft.



From a technical perspective, as long as the stock holds above $170 levels, $BA could see a resumption of the upside move. If this happens, the next key level to watch will be at $235 then $280. A drop below the support at $170 will invalidate the bullish view.

American Express​

The credit card and payments company American Express (NYSE: AXP), the stock has soared more than 22% so far this year. Shares of American Express jumped more than 12% on January 27th after the company reported stronger-than-expected Q4 revenue numbers. The company revenue rose 17% year over year to $14.2 billion in the fourth quarter.



Technically the current price action signals suggest that the medium-term bullish trend remains intact. Furthermore, the stock trading is slightly down from the recent peak. However, in the coming days, there are chances the American Express stock may eventually rise above the 52-week high of $199 if the bullish sentiment continues.

Cisco Systems​

Last, but by no means least on the list, we have the networking equipment giant Cisco Systems (NASDAQ: CSCO), Cisco stock declined almost 25% this year. However, the share price has been in a slow comeback in the past few weeks, it has recovered from a 52-week low of 38.40 to a high of $50. Cisco's earnings release for the fourth quarter is slated for February 15, a strong earnings report could certainly help to boost the share price further.



The stock was recently upgraded by Credit Suisse and given a $67 price target, which could be a positive catalyst for the stock in the coming trading sessions. Therefore, the Cisco stock price will likely continue rising as buyers target the 52-week high level at $58 first, a break above would increase the potential of an extension towards $65 over the coming months.

Check out the original blog with charts here - https://gulfbrokers.com/en/5-stocks-you-should-add-to-your-watchlist-now
 
Indian rupee, Sensex and Nifty gained sharply on Wednesday after the RBI slowed the pace of interest-rate increases for the second straight time. The Reserve Bank of India hiked the key interest rate by 25 basis points and projected better growth.

"The outlook remains clouded by geopolitical tensions, and oil prices. The world is looking to India to energise global partnership in several critical areas," RBI Governor Shaktikanta Das said. The Indian economy remains resilient in the face of considerable uncertainties on global commodity prices, he added.

EQUITIES

European stock opened higher while US futures traded with positive momentum throughout the Asian session following Federal Reserve Chairperson Jerome Powell's remarks that inflation will drop significantly this year. Moving ahead, today's speeches by Federal Reserve policymakers Bostic, Williams and Minneapolis Fed President Kashkari may offer some further insight into the Fed's thinking.

OIL

Crude oil futures extend the rebound on Wednesday as investors looked to the FED Powell's less hawkish than feared comments, with the focus now turning to weekly EIA inventory data. Meanwhile, the American Petroleum Institute inventory data showed the US crude inventories declined by 2.18 million barrels last week, defying forecasts for a 2.15-million-barrel increase.

CURRENCIES

In the currency market, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies slightly retreats from the fresh monthly highs. The British pound regained momentum against the US dollar and Euro. As of this writing, GBPUSD recovered back to above 1.2100. During the previous session, the currency pair broke below the psychological support of 1.2000 and hit a fresh monthly low of 1.1960.

GOLD

The precious metal rebounded back to above $1880 on Wednesday Morning after the comments from FED chair Powell were seen as relatively less hawkish than anticipated by investors. While he also said that more interest-rate hikes will be necessary. However, the overall momentum remains mixed for the long term as the improvement in the risk appetite of the investors is shifting the focus from safe-haven assets.

Economic Outlook

On the data front, Industrial production in Germany went down sharply by 3.1% month-over-month in December of 2022, following an upwardly revised 0.4% rise in November and worse than market forecasts of a 0.7% decline. This marked the steepest decline in industrial output since March 2022.

Coronavirus update:

Worldwide, more than 676 million people have been confirmed infected and more than 6.77 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The currency pair needs to stay above 1.0800; otherwise. 1.0700 and 1.0660 may be visible soon. On the upper side, 1.0810 is the key resistance zones to watch, if the pair breaks and closes above this area then the next resistance area to watch is around 1.0840/60.



The important levels to watch for today: Support- 1.0710 and 1.0670 Resistance- 1.0770 and 1.0800.

GOLD: For today, $1895 remains the key resistance to watch. On the downside, rejection and pullback from the $1895 resistance allow for a dip towards $1874, with $1865 and $1860 forming additional downside targets.



The important levels to watch for today: Support- 1875 and 1864 Resistance- 1888 and 1895.

Quote of the day - “Always trust your intuition, which resembles a hidden supercomputer in the mind. It can help you do the right thing at the right time if you give it a chance.” - Michael Steinhardt.
Read more - https://gulfbrokers.com/en/daily-market-report-613
 
Quite right earlier there were no other options left but as of now there are so many options that anybody would love to add to his wishlist some of them are as under

1. Tesla Inc. (TSLA) 2. Apple Inc. (AAPL) 3. Amazon.com, Inc. (AMZN) 4. Microsoft Corporation (MSFT) 5. Alphabet Inc. (GOOGLE).
 
The world’s most popular cryptocurrency Bitcoin (BTCUSD) slid to a fresh weekly low of $22,400 Thursday Morning. The good news is that the value of the crypto pair recovered slightly, after the drop now it's flirting with the $22,700 mark. But the gradual decrease is expected to continue if the bearish sentiment continues. Indeed. As recently as February, Bitcoin reached a new high of $24,250 after almost 6 months, but it's been under a consolidation phase all the way since then.

Moving ahead, as I mentioned in the Monthly technical analysis report (https://gulfbrokers.com/en/monthly-technical-analysis-february-2023 ) $23,400 was the first key support area. The pair already broke the support, now the next short-term support is still around the $22,300/200 area then the crucial support level to watch is $21,500. Further selling pressure will intensify only if the pair breaks below $21,500 levels, below which the slide could extend further towards the $20,300 and $19,600 regions.

EQUITIES

US stock futures trade higher on Thursday morning supported by hawkish remarks from Federal Reserve officials. New York Federal Reserve President John Williams said the job market is still extremely robust and that they have more work to do on rates, adding that data will determine the course of rate hikes. Meanwhile, European and UK shares opened higher, and the focus shifted to speech from BoE Governor Andrew Bailey and ECB Vice President Luis De Guindos.

OIL

Crude oil futures registered a higher note early Thursday lifted by better-than-expected reports on US crude stockpiles. The latest US Energy Information Administration report showed on Wednesday, the US crude inventories increased by 2.423 million barrels in the week ended February 3rd, 2023, compared with market expectations of a 2.457-million-barrel increase.

CURRENCIES

In the currency market, Euro slightly recovered from the early session losses supported by hawkish comments from ECB policymakers. “We should see a peak in French inflation in the first half (H1) this year and inflation should then go down,” Furthermore, Isabel Schnabel, an ECB’s Executive Board member, said she plans to raise rates by 50 basis points in March. The British pound remains steady for the second consecutive day against the US dollar and Euro ahead of BoE Governor Andrew Bailey's speech.

GOLD

The precious metal remains under pressure following the Federal Reserve officials reiterated their commitment to keeping raising interest rates. As of this writing, the metal retreats back to below $1880. For today, the main drivers for the gold remain the movement of the US dollar, FED policymaker's comments and the weekly Initial Jobless Claims data.

Economic Outlook

On the data front, the official data showed on Thursday Morning Germany's harmonized inflation slowed in January. Inflation in Germany eased to 9.2 percent in January from 9.6 percent in December. Meanwhile, consumer prices advanced at a faster pace of 8.7 percent annually after the 8.6 percent increase in December.

Coronavirus update:

Worldwide, more than 676 million people have been confirmed infected and more than 6.77 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The price actions appear to be part of a consolidation phase and Euro is likely to trade sideways today. However, a fresh demand for the euro can be anticipated once the pair rises above the 1.0800/10 resistance. On the other hand, the next immediate support prevails at 1.0720, further breakout of 1.0700 can lead the pair towards 1.0660/30 levels.



The important levels to watch for today: Support- 1.0720 and 1.0700 Resistance- 1.0780 and 1.0810.

GOLD: The gold price is back above $1885 but as upward momentum is not strong. For today the first support for the Gold appears to be around $1875, in the short-term any break below $1875 the next downside level to watch is $1868/64. On the upper side, the key resistance remains above $1886.



The important levels to watch for today: Support- 1875 and 1860 Resistance- 1888 and 1895.

Quote of the day - “A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate to working smarter. In fact, sometimes it is the other way around.” - Martin Schwartz.
Read more - https://gulfbrokers.com/en/daily-market-report-614
 
Shares of the American ride-hailing giant Uber (NYSE: UBER) extend the gains and surged another 6% on Wednesday after the company delivered stronger-than-expected financial results for the fourth quarter. Revenue and earnings came in above consensus estimates driven by growth in gross bookings and increase in demand for airport and office rides. Meanwhile, Uber rival Lyft shares ended 6% lower; the company is scheduled to report results on Thursday.
  • Earnings per share: $0.29 vs. -$0.15 expected
  • Revenue: $8.61 billion vs. $8.50 billion expected
Uber reported $8.6 billion in revenue in the last three months of 2022, a 49% increase from the same period a year ago and rideshare revenue surged 82%. The company stated that it expects to achieve operational income profitability later this year.

UBER also revealed that the number of gross bookings increased from 12% in the fourth quarter of 2021 to 17.7% in the fourth quarter of 2022. Uber expects to grow gross bookings by up to 24% in the current quarter, to between $31 billion and $32 billion.

“We ended 2022 with our strongest quarter ever, with robust demand and record margins,” Uber CEO Dara Khosrowshahi said. “Our delivery business continued to show resilience, growing at a healthy rate while meaningfully expanding profitability and improving our category position in a majority of our large markets,” he added.

$UBER technical outlook​

In the short-term, if the stock continues the bullish momentum, then the immediate resistance near $38.50 breaks then the stronger resistance is $41.80, which is important to be stable above it for a continuing rise to $47 and $49.50 levels. On the downside, $32 is the immediate support level, followed by $30. Further selling pressure will intensify only if the stock break below $28/27 levels.

Check out the original article with chart here - https://gulfbrokers.com/en/ride-hailing-giant-uber-delivers-strong-quarter
 
The Japanese yen whipsawed on Friday's European session following the reports indicating that the Japanese government plans to tap former Bank of Japan Policy Board member Kazuo Ueda as the central bank's next governor. The government is expected to present the nominees to parliament next Tuesday.

The yen appreciated almost 180 pips against the US dollar to 129.80 yen per dollar after the news was released. However, as of this writing, the USDJPY rebounded back to above 131 after BoJ governor nominee Ueda said BoJ's monetary Policy Is appropriate and needs to continue the easy policy.

EQUITIES

US stock futures slightly recovered from the previous session's losses. On Thursday, Wall Street ended lower on hawkish comments from Federal Reserve policymakers and disappointing earnings results from the ride-hailing giant LYFT. Meanwhile, the UK shared reversed from the weekly highs after the release of the weaker-than-expected UK GDP report.

OIL

Crude oil futures gain sharply on Friday morning after Russian Deputy Prime Minister Alexander Novak announced on Friday that Russia is aiming to voluntarily cut its oil output by 500,000 barrels per day, starting in March, in an effort to "restore market relations." “Price cap on Russian oil and oil products is interference in market relations” – Novak said.

CURRENCIES

In the currency market, Euro remains one of the weakest currency pairs of this week. As of this writing, EURUSD hovers near the 1.0700 area. The Australian dollar struggling to regain momentum following the RBA’s latest monetary policy statement showed that the central bank revised its inflation forecasts higher for this year, saying price pressures were spreading into services and wages. The market is pricing in a 76% chance the RBA increases rates by 25 basis points at their March meeting.

GOLD

Bears take control of precious metals, especially the gold price. Moving ahead to the North American session, gold traders and investors should closely monitor the release of Michigan consumer sentiment data and Fed Governor Christopher Waller's speech which might have a very high impact on the dollar which will result in an impact on the gold price.

Economic Outlook

On the data front, China's consumer price index (CPI), a main gauge of inflation, rose 2.1 percent year on year in January, but below market expectations of 2.2%. On a monthly basis, consumer prices increased 0.8% in January, compared with a consensus of 0.7%.

Moving ahead today, the important events to watch:

Canada – Employment report: GMT – 13.30

US – Michigan consumer sentiment: GMT – 15:00

Coronavirus update:

Worldwide, more than 676 million people have been confirmed infected and more than 6.77 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
Technically the overall momentum remained bearish for the pair after the bulls failed to extend the rally. In the short term, if the price breaks below 1.0660 it would open doors toward 1.0600. On the upper side, the first immediate resistance is around 1.0730 and then 1.0770.



The important levels to watch for today: Support- 1.0680 and 1.0650 Resistance- 1.0730 and 1.0770.

GOLD: For today, $1850 is the immediate support level, followed by $1848. If the metal breaks below the $1,848, the slump will quickly extend toward the $1840/35 mark. On the upper side, gold is likely to find immediate resistance at $1873 then 1880.



The important levels to watch for today: Support- 1852 and 1840 Resistance- 1873 and 1880.

Quote of the day - “All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.” — Peter Lynch
Read more - https://gulfbrokers.com/en/daily-market-report-615
 
Global markets started the week on a cautious note on Monday as inventors anxiously waiting for the release of the US CPI report for January that might influence the Federal Reserve’s decision on whether to act more aggressively. Last week, Federal Reserve Chairman Jerome Powell today reiterated his belief that further increases in the federal funds rate will be necessary to bring inflation down to the agency’s 2% target.

The inflation data is set to be released on Tuesday at 13:30 GMT. The market participants forecast a 6.2% inflation - that would be 0.3% lower than in December. However, If the data come out higher than the expectation, the king dollar will extend the monthly gains while the precious metals and stock markets will fall because high inflation could force the FED to continue the interest rate hike in coming meetings, lending more support to the US dollar.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Cisco, Coca-Cola, Shopify, DoorDash, Airbnb and Palantir.

GOLD

The precious metal remained under pressure throughout the last week weighed down by the mixed comments from the FED policymakers dented the appeal of bullion. ECB and BOE policymakers also signalled that they would continue to raise rates to crush inflation. For gold, the main attraction for this week is Investors waiting for the US CPI and retail sales data, which could trigger volatility in the market.



Technically the current price action signals suggest that a medium-term bearish trend remains intact. On the downside, if it continues the bearish momentum, the slump will quickly extend toward the $1848 then $1835 mark. On the flip side, the resistance for the metal appears to be around 1895. If the price break and closes above this area, the next upside level to watch is $1920.

DOLLAR INDEX

The dollar index, which tracks the currency against key rivals ended higher for the second consecutive week supported by upbeat US macroeconomic data and the greenback received additional buying pressure last week after the hawkish comments from some Fed policymakers. On Friday, the US economic data showed Michigan consumer sentiment for the US jumped to a thirteen-month high of 66.4 in February of 2023 from 64.9 in January. This week, traders and investors should pay attention to an important event for the USD this week, the US CPI report on Tuesday.



This week as long as the greenback trades above 103 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 104, a break above this level will confirm a possible move to 104.50 and then 104.80. On the downside, 103.40 is the immediate support level, followed by 103. Further selling pressure will intensify only if the metal break below 102.60 levels.

EURUSD

EURUSD ended last week with considerable losses after the currency pair failed to close above 1.0800 and It seems to me that long euro positions are being liquidated and short positions are being established in recent weeks. Moving ahead, this week, the economic data is limited this week to the Eurozone GDP data but the week ahead is littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the Euro.



On the weekly time frame, the Euro is currently supported at 1.0600 and the resistance above 1.0800. If the pair continues to fall this week, the key support level is 1.0600 and 1.0570/50. On the upper side, in case the pair manages to settle above 1.0800, it will gain upside momentum and head towards the next resistance level at 1.0870.

DOW JONES

Dow Jones and other US key indices ended mixed on Friday after a volatile session that saw ride-hailing giant Lyft plunged 36% as its earnings result missed expectations and other growth stocks also lost ground. However, Dow Jones notched up small gains before the closing, but the upside pressure clearly weakened amid a solid ceiling in place. For Dow this week, US retail sales and inflation data are key to watch while a busy Q4 earnings season is largely over but there are few earnings of broad significance due this week.



Technically the current price action signals suggest that the initial bias remains neutral for the upcoming week. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 33,500 and 33,300/000 if it fails to regain upside momentum. On the bullish side, the immediate resistance stays above 34,000 then the crucial one is 34,400, and a break above this exposes the Index towards the 34,700 and 35,000 levels.

Read more here with the chart - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-67
 
The dollar index (DXY), which tracks the currency against key rivals extend its weekly loss ahead of the most awaited economic data this week US CPI report, which is a measure of inflation is one of the important data which helps the US Federal Reserve to decide on further interest rates. The US CPI numbers will be coming out at 13:30 (GMT) today.

The market participants forecast a 6.2% inflation - that would be 0.3% lower than in December. On a monthly basis, the CPI is seen rising to 0.5% versus 0.1% previously. However, a higher-than-expected reading should be taken as bullish for the USD, while a lower-than-expected reading should be taken as bearish for the USD.

EQUITIES

European and UK shares continued to trade higher on Tuesday, registering modest gains. Meanwhile, US stock futures trading in a narrow range following the previous session gains as traders and investors are waiting for fresh inflation data.

OIL

Crude oil futures reversed from the previous session highs after the US announced plans to release 26 million barrels of oil from strategic reserves, countering the impact of Russian output cuts and recovering Chinese demand. Moving ahead, the US CPI data and weekly crude inventory data will be key to deciding the further price movement for oil prices.

CURRENCIES

In the currency market, the British Pound rebounded back to near 1.2200 against the US dollar during the European session on Tuesday. The upside momentum is supported by the release of robust UK employment data. While considering the recent rebound the US dollar movement will continue to play a vital role in this currency pair's future direction.

GOLD

Precious metals are moderately higher in early European trading Tuesday, as the gold price has quickly rebounded from early selling pressure. While the upside momentum is limited Investors remained concerned after several US Federal Reserve policymakers signalled that they were unwavering in their fight against inflation and that any talk of a pause in rate hikes was premature.

Economic Outlook

On the data front, the UK released upbeat jobs data on Tuesday. UK’s Unemployment Rate reprints the 3.7% figure for three months to December, unchanged from the September to November period. The number of people in work in the UK rose by 74K in the three months to December, well above forecasts of a 40K increase.

Moving ahead today, the important events to watch:

Eurozone – GDP: GMT – 10.00

US – CPI: GMT – 13:30

Coronavirus update:


Worldwide, more than 677 million people have been confirmed infected and more than 6.78 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The currency pair rebounded back to above 1.0760 during the European session. For today, the first resistance is located for the pair at around 1.0800, a break above this level will confirm a possible move to 1.0870. On the downside, any meaningful pullback now seems to find some support near the 1.0700 zones, below which the slide could further get extended towards the 1.0650/30 region.



The important levels to watch for today: Support- 1.0700 and 1.0650 Resistance- 1.0800 and 1.0870.

GOLD: For today, the first key support level is located at 1850. In case it breaks below this level, it will head towards the next support level which is located near 1838. On the upper side, If the metal regains strong upside momentum and press back above 1880 then the key resistance area to watch is 1895.



The important levels to watch for today: Support- 1850 and 1838 Resistance- 1872 and 1880.

Quote of the day - In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money. -Ray Dalio.
Read more - https://gulfbrokers.com/en/daily-market-report-616
 
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