Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Overall the currency pairs still remained bullish. We need to see a weekly close below 0.68 for further downside. For this week the important levels to watch 0.6985 and 0.6850.

 

[syamfx2020]

On Saturday, the World Health Organization (WHO) reported a record number of 200,000 new coronavirus cases, with the United States, Brazil and India showing the biggest increases. The number of people infected with COVID-19 across the world crossed 11.3 million, of which around 531,729 have died, according to Johns Hopkins. The US Centers for Disease Control and Prevention on Sunday reported 52,228 new cases and said the number of deaths had risen by 271 to 129,576. Brazil, the second-worst affected country in the world reported 26,051 new cases. India had on Sunday overtaken Russia to become the third-most affected country globally in terms of the numbers of Covid-19 cases. The total number of Covid-19 cases in the country now stands at 6, 97,413 and reported 25,000 new cases and 613 deaths in 24 hours.

EQUITIES

Asian and European stocks trading higher on Monday, the Shanghai Composite climbed 4.58%, Hong Kong’s Hang Seng 3.06% and Japan’s Nikkei 1.84%. Last week, the Dow Jones gained 3.2%, the S&P 500 added 4% and the Nasdaq rose 4.6%.

OIL

Crude oil prices trading steady on Monday supported by last week inventory report and tighter supplies. The Oil traders will keep a keen eye on the API and EIA report on the global crude market this week.

CURRENCIES

The New Zealand dollar surged to fresh 4-week high after New Zealand’s Prime Minister Jacinda Adern announced an extension of its NZ$5.2 billion loan scheme until the end of the year. The British Pound edged higher during the European session following the UK Construction PMI jumped to 55.3 in June 2020 from 28.9 in the previous month, beating market consensus of 47.0.

GOLD

Gold price started the week on a positive note; the risk of a second wave of coronavirus infection remains a major concern that will keep supporting the precious metal.

Economic Outlook

Moving ahead to the week, the investors will closely monitor the improvement in global economic data which includes RBA rate decision, US manufacturing data; US crude oil inventories report, US jobless claims, and Canada employment and housing data.

On the data front, the German factory Orders climbed 10.4% in May, rebounding from a record 26.2% plunge in April. The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. While the Eurozone retail sales also reported a strong rebound 17.8% in May, beating market forecasts of 15%.

Technical Outlook

XAU/USD: The yellow metal trading above $1770 on Monday supported by $1758 previous week low.

The important levels to watch for today: Support- 1765 and 1758 Resistance- 1790 and 1800.

EUR/USD: The currency pair trading strong on Monday against the dollar after strong German factory orders data.

The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1320 and 1.1350.

Quote of the day: To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking – Alexander Elder.


Read more- https://gulfbrokers.com/en/daily-market-report-120

 

[syamfx2020]

EUR/USD slips back to below 1.1300. During the previous session, the bulls have been unable to break above 1.1350. The short term support forming near 1.1240 below that 1.1180/90. On the upper side break above 1.1350 can lead the pair towards June high of 1.1420.

 

[syamfx2020]

GBP/AUD possible double bottom near 1.7870. The currency pair bounced from the bottom and at the time of writing the pair hovers around yesterday's high of 1.80. Overall the momentum remained bullish throughout today.

Levels to watch this week
Support: 1.7940 and 1.7870
Resistance: 1.8000 and 1.8100

 

[syamfx2020]

The Reserve Bank of Australia (RBA) left official interest rates at the historical low of 0.25% on its monthly meeting on Tuesday. RBA governor Philip Lowe said, "Uncertainty about the health situation and the future strength of the economy is making many households and businesses cautious, and this is affecting consumption and investment plans," He pledged to not improve the money price goal till progress was made in direction of full employment and the board was assured inflation can be sustainably inside the 2-3% goal band.

EQUITIES

European stocks fell to the session low on Tuesday after the European Commission lowered its GDP forecasts for 2020 and 2021, with the Eurozone economy seen contracting by a deeper 8.7% this year. Meantime, the eurozone agreed on Tuesday new debt relief measures for Greece worth about 750 million euros ($840 million) as part of the country’s post-bailout programme. On Monday. Wall Street closed higher, stocks of the biggest companies once again led the way, and strength for Apple, Amazon and other tech-oriented titans helped lift the Nasdaq composite 2.2%, to a record high of 10,433.65.

OIL

Crude oil prices trading slightly weaker on Tuesday ahead of API report which will release later today. Last week, the American Petroleum Institute reported a larger-than-expected crude oil stock draw from previous 1.749M to -8.156M on June 26.

CURRENCIES

The US dollar recovered from the previous session losses supported by strong US ISM Non-Manufacturing PMI print for June indicated that the world’s largest economy is starting to recover. The Australian dollar edges lower during the European session after the mixed comments from RBA and a six-week lockdown of the Melbourne area announced in reaction to a surge in Covid-9 cases.

GOLD

Gold price retreat from 8- year high and trading around $1775 on Tuesday. During the previous session, the yellow metal price climbed to fresh week high supported by the new wave of the coronavirus in several countries.

Economic Outlook

On the data front, the German industrial production rebounded 7.8% in May, less than 10% anticipated by analysts. On Monday, the US economic data showed the ISM Non-Manufacturing PMI moves from contractionary to expansionary level at 57.1 compared to 45.4 for the previous month.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 11.6 million, of which around 538 thousand have died, according to Johns Hopkins. The USA has had the most recorded cases, with just under 3 million. Currently, the US, Brazil and India are the top-three countries severely impacted by the COVID-19 pandemic. South Africa’s coronavirus cases have passed 200,000, the highest total in Africa. Spain reported new data for the first time in three days, with the number of cases rising by 1,244 during the last weekend.

Technical Outlook

NZD/USD: The currency pair retreat from the 4- week high and trading below 0.6530 during the European session.

The important levels to watch for today: Support- 0.6510 and 0.6480 Resistance- 0.6585 and 0.6610.

EUR/USD: The currency pair slips back to below 1.1300. During the previous session, the bulls have been unable to break above 1.1350.

The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1320 and 1.1350.

Quote of the day: The best stock to buy is the one you already own- Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-121

 

[syamfx2020]

toc
The food delivery industry is set to benefit largely from the COVID-19 pandemic. The pandemic has boosted sales of food delivery companies, with restaurants shuttered, more people staying home and ordering takeout food. Many food delivery companies which are in a boom, now faces further competition as lockdown demand eases. As a result, the food delivery sector is undergoing a major consolidation right now, and more are expected. Recently Uber (NYSE: UBER) finally got its food delivery company, acquired its competitor Postmates after the company lost out in a bid for Grubhub last month. Meanwhile, Grubhub (NYSE: GRUB) was purchased by Amsterdam-based Just Eat Takeaway (AMS: TKWY) last month and this merger creates the largest food delivery business in the world outside China.

Uber, Postmates Agree on $2.65 Billion All-Stock Deal

Postmates agreed to be acquired by Uber in a $2.65 billion, all-stock deal, the two companies announced on Monday. The company spent nearly 5% of its worth to buy Postmates and the ride-hailing giant can improve its market share to 37%, from its current position of 29%. The company reported, the demand for rides by far Uber's biggest business plunged 75% in the second quarter from a year ago. Meantime, the orders for its Uber Eats food delivery service doubled during the same period.

"Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery - they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19," Uber CEO Dara Khosrowshahi said in a statement.

Postmates founded in 2011, the company was one of the first to let customers in the US order meal delivery using a smartphone app. Currently, the Postmates platform operates in all 50 states and offers customers access to the most selection of merchants in the US with more than 600,000 restaurants. Postmates’ app will continue to run separately after the acquisition, but it’ll be able to tap into a merchant and delivery network combined with Uber Eats.

"Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers,” Postmates co-founder and CEO Bastian Lehmann said.

Netherlands-based Just Eat Takeaway purchase Grubhub for $7.3 billion

On June 10 Amsterdam-based Just Eat Takeaway.com announced that it was acquiring Chicago-based Grubhub. The deal is expected to close in the first quarter of 2021, with the combined company to be headquartered in Amsterdam, and its US headquarters in Chicago. GrubHub is currently the number the three-meal service provider in the United States. It serves more than 1,600 cities there. Just Eat Takeaway.com, which was founded in 2000, is an Amsterdam-based company that does business with over 155,000 connected restaurants.

“Matt and I are the two remaining food-delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents,” Jitse Groen, CEO and founder of Just Eat Takeaway.com, said in a statement.

This merger will create the largest online food delivery outlet outside of China, according to the companies, and will focus on the US, UK, Germany, and the Netherlands. Grubhub processed 180 million orders for 23 million customers last year. While Just Eat Takeaway processed 413 million orders for 48 million customers.

“When you have mergers and acquisitions that improve the quality of your product, the ability to grow and bring better efficiency, it’s good for all” – Roger Agnelli.

Check out my detailed report here - https://gulfbrokers.com/en/food-delivery-giants-competition-through-ma

 

[syamfx2020]

ech
Gold price climbed above $1,800 an ounce during the European session, the first time since 2011. The overall momentum remained bullish throughout this week as investors turned to safe-haven assets amid a spike in coronavirus cases in several countries across the globe.

EQUITIES

US futures and European stocks trading lower on Wednesday while equities in Asian markets were mostly higher during the early session. The Shanghai Composite climbed 1.74% higher to 3403.44, gaining for the 7th consecutive session. On Tuesday. Wall Street closed lower, the Dow Jones Industrial Average ended 1.51% lower, the S&P 500 lost 1.08%, and the Nasdaq Composite dropped 0.86%.

OIL

Crude oil price trading slightly lower after API data released on Tuesday showed the US crude stockpiles increased by 2 million in the latest week. The Oil traders await the release of EIA crude inventory data due today.

CURRENCIES

The EUR/USD trading unchanged on Wednesday after the European Commission approved German plans to set up a fund with a budget of up to €500 billion for providing guarantees. The currency pair retreated to below 1.13 on Tuesday after the European Commission lowered its GDP forecasts for 2020 and 2021.

GOLD

Gold price gained above $1800 on Wednesday supported by geopolitical tensions and increasing coronavirus cases in several countries including the US, India, Australia, and Spain.

Economic Outlook

Moving ahead today, the British pound traders will closely monitor Chancellor Rishi Sunak’s supplementary budget statement later in the day, following Prime Minister Boris Johnson's announcement last week of £5 billion infrastructure spending plans.

During the Asian session, Japan's Economy Minister Yasutoshi Nishimura announced new measures to curb the spread of Coronavirus infections.

On the data front, the Ivey PMI from Canada surged to 58.2 for the month of June, compared to the 50.2 that was forecast, indicating an expansion of manufacturing activities.

Coronavirus update:

US Covid-19 Cases Near 3 Million The number of people infected with the coronavirus across the world surpassed 11.83 million, of which around 544 thousand have died. The World Health Organization (WHO) Wednesday warned that a spike in global deaths could be expected given the surge in cases over the last week. Brazil Wednesday reported 45,305 new cases taking its total tally to 1,668,589. Its toll rose by 1,254 to 66,741.

“The outbreak is accelerating,” said World Health Organization (WHO) Director-General Dr Tedros Adhanom Ghebreyesus.

Technical Outlook

GOLD: The yellow metal trading steady above $1800 on Wednesday and the next important level to watch $1810.

The important levels to watch for today: Support- 1790 and 1778 Resistance- 1810 and 1818.

GBP/USD: The currency pair retreat from the 3-week high and trading near 1.25 during the European session.

The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1320 and 1.1350.



Quote of the day: Good day traders do not have big swings or big losing days. A good day trader is very conservative and picks his spots closely- Edward Franco.

Read more- https://gulfbrokers.com/en/daily-market-report-122

 

[syamfx2020]

The British Pound boosted by the new £30 billion fiscal stimulus plan. On Wednesday UK Chancellor Rishi Sunak's announced fresh stimulus measures to support jobs and activity in the UK disappointed investors.

GBP/USD is now testing the resistance area 1.2650. I expect there is a chance for a pullback towards 1.2580/90 level. On the other side break above 1.2655, the next level to watch 1.2690.

 

[syamfx2020]

The British pound trading strong against the Dollar and Euro after the new £30 billion fiscal stimulus plan. On Wednesday UK Chancellor Rishi Sunak's announced fresh stimulus measures to support jobs and activity in the UK disappointed investors. Other measures included a stamp duty holiday, a £3 billion green investment package and a temporary cut to VAT on tourism and hospitality.

EQUITIES

Global stocks trading mixed on Thursday while Chinese and Japanese shares closed higher. Asian stocks boosted by positive China’s inflation data released during the Asian session. In Australia, the S&P/ASX 200 is gaining momentum and trades 0.9% heading into the afternoon in Sydney.

OIL

Crude oil price trading unchanged on Thursday after the data from both the EIA and the API showed the US crude inventories unexpectedly increased last week.

CURRENCIES

On the currency market, the Chinese yuan rose to a four-month high of 6.9872 per dollar on Thursday. Meantime, the EUR/USD trading slightly weaker ahead of today’s Eurogroup meeting, at which Eurozone finance ministers are set to elect their new president.

GOLD

The gold price hovers around the highest level since 2011 high which was driven by the rise in the number of coronavirus cases from the US and worldwide.

Economic Outlook

On the data front, China's National Bureau of Statistics reported the consumer price index for the country increased by 2.7% in June.

On Wednesday, the Federal Reserve published a partial list of banks and credit unions participating in its Main Street Lending Program in a bid to drum up interest in the program designed to help small and midsize companies weather the recession caused by the coronavirus pandemic. Meanwhile, Bank of Japan's (BoJ) Governor Haruhiko Kuroda said the economic recovery will depend on the development of the pandemic.


Moving ahead to the North American session, the US unemployment claims for the last week will be the important events to watch.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 12 million, of which around 549 thousand have died, according to Johns Hopkins. Australia reported 134 new coronavirus cases on Wednesday. The country’s second lockdown began on Wednesday, as five million residents of Australia’s second-largest city were forced to stay in their houses for six weeks, except for essential reasons. Indonesia's confirmed infections have soared to a new daily high of 2,657, up from Wednesday's record of 1,853. The country has also reported another 58 deaths. This brings the total number of coronavirus cases to 70,736, including 3,417 fatalities.

Technical Outlook

GOLD: Gold price trading steady above $1810 on Thursday. The yellow metal dropped to $1806 during the previous session after placing a high of $1,818.

The important levels to watch for today: Support- 1806 and 1800 Resistance- 1818 and 1830.

AUD/USD: The currency pair trading now near 0.6980 after climbing to the psychological level 0.70 during the European session.

The important levels to watch for today: Support- 0.6960 and 0.6920 Resistance- 0.7000 and 0.7030.

Quote of the day: Without passion, you do not have energy. Without energy, you have nothing- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-123

 

[syamfx2020]

View attachment brown-and-white-factory-building-during-night-time-3855962.jpg
Crude Oil price struggles to find an upside direction as the oversupply concerns increase after data from both the EIA and API showed a surprise build in US crude inventories last week. According to the EIA Petroleum Status Report, US crude oil stocks rose by 5.654 million barrels in the week ended July 3rd, 2020 and the API report also shows a build of 2 million barrels in crude oil inventories. The Oil investors and trader’s attention now turns towards the OPEC and its allies (OPEC+) meeting scheduled on July 15 for fresh updates on the oil output cuts policy.

EQUITIES

US stock futures continues the second-day decline as fears over increasing coronavirus cases worldwide- globally, 227,000 fresh cases were reported on Thursday. On Friday, Asian equity markets followed up on US session losses. In South Korea, the Kospi index was down 0.55% and the Shanghai Composite was down 1.05% and Hong Kong’s Hang Seng Index fell 1.76%.

OIL

Crude Oil prices dropped to near the weekly low on Friday as surging global coronavirus cases raised fears that fuel demand is likely to remain subdued. The benchmark Brent crude fell more than 2% to around $41.3 a barrel.

CURRENCIES

US dollar rebounded from the fresh week low on Thursday after the news that the US Supreme Court has ruled that the prosecutors could examine President Trump’s financial records in New York. The news appears to have added extra uncertainty to the US political scenario ahead of the general elections in November.

GOLD

Gold price edged lower on Friday after jumping to a 9-year high in the previous session and during the European session the yellow metal dropped to a fresh session low of $1795.

Economic Outlook

On Thursday, Federal Reserve policymaker Bostic said that he did not see the US economy returning to its pre-crisis level “until mid-2021 or maybe later into 2022” but he did see “more jobs and more growth” by the end 2020.

On the data front, the US Labor Department reported the Initial unemployment claims fell by a seasonally adjusted 99,000 to 1.3 million for the week ended July 4.

Coronavirus update:

The number of people infected with the coronavirus across the world rose towards 12.3 million, of which around 554 thousand have died, according to Johns Hopkins. As per media reports, 3 million Americans have already been infected with the coronavirus, with a daily record of more than 60,000 new cases and death tolls around 134,000. Meanwhile, In the UK, beauty services will be allowed to re-open from 11th July and gyms and other leisure facilities from 25th July.

Technical Outlook

GOLD: Gold price slightly rebounded from the early losses and at the time writing the bullion trading above $1805.

The important levels to watch for today: Support- 1790 and 1778 Resistance- 1806 and 1818.

EUR/USD: The currency pair trading above 1.1290 after slipped to a fresh daily low of 1.1255 during the early session.

The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1310 and 1.1340.

Quote of the day: Successful trading is always an emotional battle for the speculator, not an intelligent battle- Jesse Livermore.

Read more- https://gulfbrokers.com/en/daily-market-report-124