Daily Market Report by GulfBrokers 2020-2021

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DowJones and EURUSD slightly rebounded from the weekly lows. Any break below these levels would open doors towards the new lows.

Key technical levels to watch

EURO: 1.1980/40 and 1.2080/1.21
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DOW: 33700/300 and 34000/200
 
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UiPath (NYSE: PATH) shares closed higher for the second consecutive day. The Automation software company raised $1.34 billion in its initial public offering Wednesday. $PATH shares rose more than 20% on its first day of trading Wednesday and ended the day with a market cap of approximately $35.6 billion. UiPath provides complete automation tools including cloud deployment and the company's revenues are growing at an average annual rate of 86%.

EQUITIES

Wall Street ended lower on Thursday after Senate Republicans unveiled a $568 billion infrastructure plan, much lower than President Biden's more than $2 trillion proposals.

On the earnings front, American Express (NYSE: AXP) and Honeywell (NYSE: HON) reporting earnings today before the bell.

OIL

Crude oil prices slightly rebounded on Thursday while the overall momentum remains bearish throughout this week driven by the surging global COVID-19 infections and weaker-than-expected oil inventory data.

CURRENCIES

In the currency market, the EUR/USD recovered from the previous session losses. On Thursday, the Euro dropped to below the 1.20 psychological level after the ECB president said the possibility of easing the bank’s bond purchase program anytime soon.

GOLD

The Safe-haven metal slips lower on Thursday from the fresh weekly highs after the US weekly jobless claims fell to their lowest for over a year.

Economic Outlook

On the data front, the UK retail sales jumped 5.4% in March following a 2.2% rise in February. On annually the retail sales grew 7.2% in March from a 3.6% drop in Feb. Both the figures beat the market forecast.

Moving ahead today, the important events to watch:

US – Manufacturing and Services PMI: GMT – 13.45

US – New home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 144 million people have been confirmed infected and more than 3 million have died. The United States has confirmed over 31.9 million cases and has had more than 570,000 deaths from COVID-19, the highest totals in the world. India reports 332,730 cases for the past 24 hours, the highest-ever daily total anywhere in the world for a second straight day, bringing the country total to 16.26 million.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.2050 supported by better-than-expected PMI data from Germany and Eurozone.

eurusd


The important levels to watch for today: Support- 1.1990 and 1.1960 Resistance- 1.2080 and 1.2110.

GOLD: The yellow metal retreats back to near the short-term support area of $1780 after it failed to break above the psychological level of $1800.

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The important levels to watch for today: Support- 1780 and 1774 Resistance- 1794 and 1800.

Quote of the day: Losses are necessary, as long as they are associated with a technique to help you learn from them- David Sikhosana.

Read more- https://gulfbrokers.com/en/daily-market-report-292
 
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Fed decision, TSLA & FAANG earnings, OPEC meeting and US GDP

Buckle up for a highly volatile trading week ahead.

Read my detailed report here-
 
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The electric car maker Tesla (NASDAQ: TSLA) is scheduled to announce Q1 earnings on Monday after market close. Consensus forecast EPS of $0.79 on revenue of $10.29B. Earlier this month the carmaker reported record Q1 sales. The company delivered nearly 185,000 electric vehicles in Q1.

$TSLA key technical levels to watch today

Support: $690 & $670

Resistance: $755 & $785

EQUITIES

Global stocks and US stock futures trading mixed on Monday as investors remain concerns about increasing COVID-19 cases in the Asian countries including India and Japan.

On the earnings front, Otis (NYSE: OTIS) reporting earnings today before the bell while Tesla (NASDAQ: TSLA) is scheduled to report results after the market close.

OIL

Crude oil prices remain under pressure with coronavirus worries and an unexpected build in U.S. crude stockpiles.

CURRENCIES

In the currency market, the EUR/USD ignored the weaker-than-expected German IFO data. At the time of writing, the currency pair hovers near the 1.2100 area. The US dollar struggling to find the upside momentum ahead of the Federal Reserve’s monetary policy meeting.

GOLD

The Safe-haven metal slightly rebounded from the Asian session lows. Meanwhile, the overall momentum remains mixed as the investors await the Fed interest rate decision during the week.

Economic Outlook

On the data front, the German IFO business climate indicator came at 96.8 in April, below market expectations of 97.8.

This week the main highlights of the economic calendar will be the Bank of Japan and FOMC meeting, the US and Germany GDP data.

Moving ahead to the North American session, the U.S. Department of Commerce's Census Bureau will release data on U.S. durable goods for the month of March.

Coronavirus update:

Worldwide, more than 145.9 million people have been confirmed infected and more than 3.09 million have died. The United States has confirmed over 32 million cases and has had more than 571,000 deaths from COVID-19, the highest totals in the world. India confirms 352,991 new coronavirus infections Monday, a daily record, lifting the country's overall tally to 17 million infections.

Technical Outlook

EUR/USD:
The currency pair climb to a fresh monthly high of 1.2110 on Monday during the Asian session boosted by the weaker US dollar.

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The important levels to watch for today: Support- 1.2060 and 1.2010 Resistance- 1.2120 and 1.2170.

GOLD: The yellow metal trading above $1780 area during the European session, if the bullish momentum continues the next upside levels to watch the $1790 and $1795 zone. On the flip side, the immediate support at $1774/70.

gold neww


The important levels to watch for today: Support- 1774 and 1770 Resistance- 1784 and 1790.

Quote of the day: “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.” ― Warren Buffett.

Read more- https://gulfbrokers.com/en/daily-market-report-293
 
This week started with weaker-than-expected German IFO data.

Moving ahead there are other few key events and earnings to watch.
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Microsoft (NASDAQ: MSFT) stock hit a fresh all-time high of $262 ahead of the earnings announcement. The company is scheduled to announce Q3 financial results on Tuesday after market close. Consensus forecast EPS of $1.78 on revenue of $41B. In its second quarter, $MSFT reported earnings of $2.03 per share and revenue of $43.08 billion.

Earlier this month Microsoft announced its $19.7 billion acquisition of Nuance Communications. Nuance develops conversational AI and ambient intelligence technology. The acquisition is Microsoft’s biggest since the $26-billion purchase of LinkedIn.

$MSFT key technical levels to watch:

Support: $255 and $245/30

Resistance: $263 and $280

EQUITIES

Global stocks and US stock futures trading flat on Tuesday ahead of the Federal Reserve's monetary policy meeting beginning later in the day. On the other hand, Tesla shares fell more than 2% in after-hours trading despite better-than-expected Q1 financial results.

“Demand for vehicles usually slows in the January-to-March period, but Tesla “saw an increase in demand,” – Tesla CEO, Elon Musk said after the earnings announcement.

On the earnings front, 3M (NYSE: MMM) and Hasbro (NASDAQ: HAS) reporting earnings today before the bell while Microsoft (NASDAQ: MSFT), Pinterest (NYSE: PINS) and Alphabet (NASDAQ: GOOGL) is scheduled to report results after the market close.

OIL

Crude oil prices recovered from the previous session lows as Investors now await the weekly API report on US crude oil stockpiles due later in the day. Meanwhile, OPEC+ Joint Technical Committee on Monday raised its global 2021 crude demand forecast to 6 million bpd from last month's estimate of 5.6 million bpd.

CURRENCIES

In the currency market, the US dollar Index struggling to find the upside momentum ahead of the US central bank meeting. The index closed mixed on Monday following the release of March US durable goods data. US durable goods increased by 0.5% in March of 2021 but came below market forecasts of 2.5%.

GOLD

The Safe-haven metal closed slightly higher on Monday supported by surging global COVID-19 cases and mixed US Durable goods data.

Economic Outlook

On the data front, The Bank of Japan on Tuesday kept its monetary policy unchanged, and the bank said the Japanese economy will likely grow 4.0%, rather than the previously estimated 3.9% expansion.

"Japan's economy has picked up as a trend, although it has remained in a severe situation due to the impact of COVID-19 at home and abroad," the BOJ said.

Moving ahead to the North American session, the traders and investors should closely watch the release of the US CB consumer confidence data.

Coronavirus update:

Worldwide, more than 147 million people have been confirmed infected and more than 3.1 million have died. The United States has confirmed over 32 million cases and has had more than 572,000 deaths from COVID-19, the highest totals in the world. On the positive side, India reported 323,144 new cases, slightly below a worldwide peak of 352,991 reached yesterday.

Technical Outlook

EUR/USD:
The currency pair retreats from the new month high of 1.2115 following the weaker-than-expected German IFO data.

eurusd


The important levels to watch for today: Support- 1.2045 and 1.2010 Resistance- 1.2100 and 1.2120.

GOLD: The yellow metal trading in a range between $1770 and $1796 for the last few days. At the time of writing, the gold price trading above $1780. Overall, the momentum remained bullish throughout the Asian session.

gold neww


The important levels to watch for today: Support- 1774 and 1770 Resistance- 1784 and 1790.


Quote of the day: “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso.

Read more- https://gulfbrokers.com/en/daily-market-report-294
 
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The two days FOMC meeting began Tuesday and concludes with a statement and a press conference due later today. The central bank scheduled to issue its policy statement at 18.00 GMT. Fed is expected to hold its federal fund's rate steady and bond-buying at a $120 billion monthly pace. The key focus will be on the FED statement and the press conference of U.S. Federal Reserve chair Jerome Powell.
EQUITIES

On Tuesday, Wall Street ended mixed despite strong financial results from Microsoft and Google, but the NASDAQ and S&P 500 closed near the all-time high. While Alphabet shares bounced more than 4% in after-hours trading following the strong Q1 results.

On the earnings front, Shopify (NYSE: SHOP) and Boeing (NYSE: BA) reporting earnings today before the bell while Apple (NASDAQ: AAPL), Facebook (NYSE: FB) and eBay (NASDAQ: EBAY) is scheduled to report results after the market close.
OIL

Crude oil prices recovered from the Asian session losses. During the Asian session, the oil prices slip following the weaker-than-expected API inventory data. The data showed the oil inventories increased by 4.319 million barrels in the week ended April 23rd.

CURRENCIES

In the currency market, the Australian dollar slipped to a fresh weekly low after the release of weak quarterly inflation data. The EURO and GBP look for direction ahead of the Fed meeting.

GOLD

The Safe-haven metal trading lower on Wednesday. The metal retreats lower after the US dollar Index rebounded above 91 supported by the upbeat US consumer confidence data. Overall, the momentum remained bearish during the Asian session.

Economic Outlook

On the data front, consumer prices in Australia increased by just 0.6 per cent over the three-month period, while in the year to March, it rose by 1.1 per cent, lower than consensus expectations of 1.4 per cent. On the other hand, the US CB Consumer Confidence index grew to 121.7, a 14-month high, in April.

Moving ahead today, the important events to watch:

US – Crude oil inventories: GMT – 14.30

US – Fed rate decision and statement: GMT – 18.00

US – Fed chair Jerome Powell conference: GMT – 18.30

Coronavirus update:

Worldwide, more than 147 million people have been confirmed infected and more than 3.1 million have died. The United States has confirmed over 32 million cases and has had more than 572,000 deaths from COVID-19, the highest totals in the world. On the positive side, India reported 323,144 new cases, slightly below a worldwide peak of 352,991 reached yesterday.

Technical Outlook

DOLLAR INDEX:
The US dollar trading slightly higher on Wednesday ahead of FOMC latest policy decision. At the writing, the USD trading above the 91.00 area.

DXY


The important levels to watch for today: Support- 90.60 and 90.30 Resistance- 91.20 and 91.60.

GOLD: The gold price dropped to a fresh weekly low of $1766 on Wednesday. If the bearish momentum continues the next downside levels to watch $1763 and $1756.

gold neww


The important levels to watch for today: Support- 1762 and 1756 Resistance- 1775 and 1784.

Quote of the day: Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected – George Soros.

Read more- https://gulfbrokers.com/en/daily-market-report-295
 
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