Daily Market Report by GulfBrokers 2020-2021

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During the last week, the global stocks and commodities ended mostly in negative territory driven by the mixed US jobs report and rising concerns about the latest COVID-19 variant Omicron. The Fridays US jobs report showed the US employers added 210,000 jobs, compared to the market expectation of 550,000 while the unemployment rate fell sharply to 4.2% from 4.6%. This week Omicron news and the high inflation fears will dominate the market sentiment once again.

On the earnings front, the companies due to release their results will be the video game retailer GameStop (NYSE: GAME) and the pet e-commerce company Chewy (NYSE: CHWY) will be among those reporting earnings this week.

GOLD

The safe-haven metal ended slightly higher on Friday boosted by a weaker-than-expected US employment report. The metal was up on Monday morning in Asia, with investors turning to safe-haven assets as concerns over the impact of COVID-19 outbreaks involving the new variant on economic recovery remain.

gold neww


For this week, $1760 remains the key support area to watch, any break below this level will open $1750/45 minimum. On the flip side, the bullish breakout of $1795 is likely to push the metal into a new trading zone, which may offer further buying opportunities until $1815/20.

DOLLAR INDEX

The greenback has closed almost flat on the weekly basis but the Index has remained in favour as the dollar became safe haven again for international investors. However, the US rate expectations have firmed after the recent hawkish comments from FED chair Powell and this will be supporting the dollar ahead of the FOMC meeting later this month.

DXY


This week, the key resistance is located for the index around 96.50, a break above this level will confirm a possible move to 96.65/96.95. On the downside, any meaningful pullback now seems to find some support near the 95.90 zones, below which the slide could further get extended towards the 95.75/50 region.

EURUSD

The currency pair closed below 1.13 last week after the US dollar recovered some of the previous session losses. On the other hand, the German Government imposed a lockdown on people who are not vaccinated against coronavirus. In the coming week, again the trend of the euro would largely depend on the trend of the dollar index.

eurusd


For this week, the key support area is around 1.1250. On the upper side, the short-term resistance at 1.1340 any break above this level will open 1.1360 then 1.1380/1.1410. On the other side, if the price break and close below 1.1250, the next immediate support is to watch 1.1230/00.

DOW JONES

Dow Jones ended sharply lower last week as investors worried that the high number of coronavirus delta variant cases may be slowing economic recovery. Dow Jones recovered part of its loss on Thursday after showing steep weakness in the first few days of last week, helped by positive comments from US president Joe Biden. Meanwhile, on Friday the index reversed from the early gains following the release of weak NFP data.

cruse


For Dow this week, the first nearest support level is located at 33,950. In case if it breaks below this level, it will head towards the next support level which is located at near 33,800 then 34,520. On the upside, 35,030 will act as an immediate and strong hurdle while 35,350 will be a critical resistance zone because above this, bulls are likely to dominate.

Read more - https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-15
 
Bitcoin (BTC) remains below the key level of $50000. In the short term, if the bearish momentum continues then the next downside levels to watch 41,000/39,800 and 33,300. On the flip side, the first key resistance is around 50,000/53.000 and then 55,600.

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Could see it at least complete this sell model and hit the $33k level. Long term I see it breaking the ATH again but I wouldn't be shocked to see it head below the $33k level.
 
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The Australian dollar rose against the greenback and other major currency pairs on Tuesday boosted by the hawkish statement from RBA. The central bank decided to maintain interest rates at 0.1% and continue its asset purchases program until at least mid-February 2022. The detection of the Omicron strain puts Australia in new uncertainties; however, it is not expected to affect the economic recovery in the country – RBA said.

“The Committee will not raise interest rates until real inflation moves within the target range of 2-3% and that inflation rebounds to that target range. The labor market will face tight enough to push wages to a steep rise from current levels. which until the Australian economy can reach that point It will take some time. And the RBA board is ready to be patient” RBA governor Philip Lowe said.

EQUITIES

US stock futures and European shares extend higher on Tuesday on fading concerns about the impact of the Omicron variant. On Monday, Wall Street ended higher supported by energy and travel stocks.

OIL

Crude oil prices holding the early session gains ahead of API inventory data. On Monday, the oil prices surged to the fresh weekly high on easing fears over the Omicron variant.

CURRENCIES

In the currency market, Commodity-linked currencies such as the Australian and Canadian dollars inched towards recent peaks on Tuesday driven by oil prices recovery. Meanwhile, the U.S. dollar was extending gains against the euro, at the time of writing, the DXY trades above 96.40.

GOLD

The safe-haven metal struggling to find the upside momentum after the global risk mood calmed. The recent reports show that Omicron patients are only experiencing minor symptoms.

Economic Outlook

On the data front, German Industrial production increased 2.8% in October, following a downwardly revised 0.5% fall in September and well above market forecasts of a 0.8% rise.

Coronavirus update:

Worldwide, more than 265 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 786,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair remains under pressure. The key support area to watch today is 1.1250. The currency pair has been moving lower since June, largely due to a broad strengthening in the US dollar.

eurusd


The important levels to watch for today: Support- 1.1250 and 1.1230 Resistance- 1.1300 and 1.1340.

GOLD: The precious metal trades steady above $1780. If the bullish momentum continues then the next upside level is to watch $1787 and $1794. On the downside, any meaningful pullback now seems to find some support near the $1775 zones, below which the slide could further get extended towards the $1770/66 regions.

gold neww


The important levels to watch for today: Support- 1775 and 1768 Resistance- 1786 and 1795.

Quote of the day - “The stock market is a battlefield. Always remember to survive in the game first. Only those that survive the battle can enjoy the spoils of the war.” – Benjamin Lee.

Read more- https://gulfbrokers.com/en/daily-market-report-412
 
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US pharmaceutical giant Novavax (NASDAQ: NVAX) bounced almost 29% on Tuesday after the head of the European Medicines Agency (EMA) said that it could soon approve the COVID-19 vaccine developed by U.S. biotech company Novavax. EMA has already approved Pfizer and Moderna vaccines that use mRNA technology.

"The vaccine from Novavax could be approved in the near future," Emer Cooke, head of the European Medicines Agency EMA said.

On the other hand, GlaxoSmithKline (Glaxo) and Vir Biotechnology announced the early-stage research, it confirmed its antibody remedy for Covid-19 is efficient in opposition to the omicron variant. Vir Biotechnology (NASDAQ: VIR) stock closed more than 11% higher on Tuesday after the news.

EQUITIES

Wall Street ended higher for the second consecutive day on Tuesday supported by positive comments from US infectious disease official Dr Anthony Fauci and better-than-expected Q3 earnings results.

OIL

Crude oil prices slightly reversed from the previous session highs. Meanwhile, the API data showed the crude inventories in the US decreased by 3,089 million barrels in the week ended on December 3rd, 2021.

CURRENCIES

In the currency market, the dollar index moved towards a fresh weekly high of 96.55 but ended below 96.30 on Tuesday after the index failed to hold the early gains. The Canadian dollar remains one of the strongest currencies this week other than the Australian dollar, focus shifts to the Bank of Canada Interest rate decision.

GOLD

The precious metal stays below $1790 on Wednesday as the inventors anxiously await the US inflation numbers, which could provide further clues on the Fed's tapering timeline.

Economic Outlook

On the data front, Japan's GDP contracted an annualized 3.6% on year in the third quarter of 2021, following the 2.0 percent increase in the second quarter.

Moving ahead today, the important events to watch:

US – JOLTS openings: GMT – 15.00

US – BOC interest rate decision: GMT – 15.00

Coronavirus update:

Worldwide, more than 265 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 786,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD:
The currency pair struggling to break above 1.3260. On the downside, any meaningful pullback now seems to find some support near the 1.3220 zones, below which the slide could further get extended towards the 1.3200/1.3180 regions.

euraud


The important levels to watch for today: Support- 1.3220 and 1.3180 Resistance- 1.3260 and 1.3300.

GOLD: For today, the resistance for Gold is around 1795 then 1800. On the other side, the immediate support is at 1780 and any break will drag the metal to 1776/1772 levels.

gold neww


The important levels to watch for today: Support- 1782 and 1776 Resistance- 1794 and 1800.

Quote of the day - “Stock price movements actually begin to reflect new developments before its generally recognised they have taken place” - Arthur Zeikel.

Read more- https://gulfbrokers.com/en/daily-market-report-413
 
On the upside, the next area to watch is $1795 then $1800/06. On the downside, any meaningful pullback now seems to find some support near the $1782 zones, below which the slide could further get extended towards the $1776/70 regions.
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EQUITIES


European shares had a mixed opening on Thursday following the release of a weaker-than-expected German trade balance report. The data showed Germany’s trade surplus narrowed from a revised €12.9bn to €12.5bn in October.

OIL

Crude oil prices hover near the weekly highs while the overall sentiment remains mixed. On the other hand, the EIA data showed US crude inventories fell by a modest 0.24 million barrels in the previous week.

CURRENCIES

In the currency market, the British pound plunged after Britain’s government tightened travel restrictions amid concerns about the spread of the omicron coronavirus variant. Meanwhile, the Euro slightly retreats from the previous session highs.

GOLD

The precious metal struggling to find the upside momentum. The recent Omicron variant raises concern was not helped the metal, while inflation risks and tapering remain the key drivers for gold.

Economic Outlook

On the data front, the Bank of Canada Leaves Benchmark Interest Rate Unchanged At 0.25%. The central bank said high inflation rates will continue through the first half of next year and the bank also believes that the economic recovery will continue through 2022.

Coronavirus update:

Worldwide, more than 266 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 49 million cases and has had more than 790,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair stays above 1.1300. If the recent upside momentum continues the next upside levels to watch 1.1370 and 1.1420.

eurusd


The important levels to watch for today: Support- 1.1300 and 1.1260 Resistance- 1.1370 and 1.1420.

GOLD: The precious metal remains under pressure a clear breakdown of the support at $1,760 could open space for further declines while only recovery to $1,796 would reverse the main negative trend.

gold neww


The important levels to watch for today: Support- 1780 and 1775 Resistance- 1790 and 1796.

Quote of the day - The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong. -William J. O'Neil.

Read more- https://gulfbrokers.com/en/daily-market-report-414
 
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