Market Reports by GulfBrokers - 2023

[syamfx2020]

Global stock markets started the new week on a bullish note with Chinese equities the star performer after the People’s Bank of China injected more liquidity into the banking system. Last week, metals and global stocks ended higher after the data released on Thursday showed that U.S. consumer prices fell for the first time in more than two years in December. The positive inflation report gave traders confidence that the Federal Reserve will curtail its hawkish tones on inflation. However, the market will get more information about the central bank’s path ahead to digest when FOMC members Harker and Williams speak on Wednesday this week.

This week, Investors and traders should shift their emphasis from inflation risks to the Q4 earnings season. The fourth quarter earnings season is expected to be strong with sectors such as banking, entertainment and airlines likely to report the latest financial results.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be American Airlines, Netflix, Goldman Sachs, Morgan Stanley and P&G.

GOLD

The precious metal hit a fresh 8-month high on Monday as easing inflation expectations sparked hopes for less aggressive interest rate hikes. The latest US CPI report showed the US Inflation rate has slowed to the lowest since October of 2021. While as of this writing the metal retreats back to below 1912 after the US dollar recovered back to above 102.50. For this week, the main drivers for the gold remain the movement of the US dollar, FED policymaker's comments and fresh inflation data from the UK and Eurozone.



Technically the overall momentum remains bullish after the strong upside move. This week, the immediate resistance for the metal near $1930/32 breaks this and closes above this resistance level then expects the market to zoom up to $1940/55. On the other hand, if it breaks below the $1900 level, will open the doors to the $1890 and $1875 levels.

DOLLAR INDEX

After having closed the last 4 trading days of the previous week in negative territory, the US Dollar Index slightly regained momentum on Monday morning. Overall, the momentum remained bearish for the last week as investors scaled back their expectations of a hawkish Fed after releasing a better-than-expected US CPI report. The crucial US retail sales figures and PPI numbers this week will be the key economic data points which could determine the next move for the currency.



From a technical perspective, USD is maintaining a negative bias according to the weekly chart. This week, If the bearish momentum continues then the next key support area to watch is 102 then 101.60 and 101.30. On the upper side, If the greenback regains upside momentum and presses back above 102.60 then the key resistance area to watch is 103 and 103.30.

EURUSD

Euro recorded solid gains in relation to the US dollar last week supported by hawkish comments from ECB policymakers and the weak US dollar. This week, European Central Bank will release the last meeting minutes on Thursday, which investors may closely scrutinize for clues on rate hike timings in the first half of 2023.



This week, good support is expected at the 1.0710/00 area, with this zone having held last week while further down, demand is also expected around 1.0660, which will act as the next area of support. On the flip side, the first immediate resistance level for the pair is 1.0870, then the stronger resistance is 1.0900/10, which is important to be stable above it for a continuing rise to 1.1000 levels.

DOW JONES

Dow jones and other US indices hit new monthly highs on Friday boosted by robust earnings results from big US banks and encouraging inflation figures. On Friday, the big US banks like JP Morgan, Citi Group and Bank of America posted the latest earnings results that topped Wall Street’s forecasts. This week the Dow traders should shift their focus from inflation and recession fears to Q4 earnings results and US retail sales numbers.



From a technical perspective, The 33,900 and 33,700 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 33,300 support zone. On the upper side, in case the index manages to settle above 34,000, it will continue upside momentum and head towards the next resistance level at 34,700 and 35,000.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-63

 

[syamfx2020]

The world’s second-largest economy, China reported better-than-expected economic data on Tuesday morning. The latest data showed that the China economy grew by 3% in 2022, better than expected but near the slowest pace in decades. China's economy grew 2.9% in the fourth quarter, down from 3.9% in the third quarter. Meanwhile, December retail sales came up 1.8% slightly above the estimates, compared to the 5.9% decline in the prior month. China’s Industrial production rose by 3.6% in 2022. The number rose by 1.3% in December, well above the 0.2% expectation.

On the other hand, official data showed Tuesday, China’s population shrank last year for the first time in more than six decades.

EQUITIES

US stock futures started the new traded week on a mixed note while European shares traded higher on Tuesday morning lifted by stronger-than-expected economic data from Germany and Eurozone. Moving ahead, the market participants and investors are likely to return their focus back to Q4 earnings results. The US banking giants, Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) are set to report Q4 earnings today before the bell.

OIL

Crude oil futures traded higher during the Asian session on Tuesday after China’s economy grew by a larger-than-expected amount in the fourth quarter. The key data for the oil prices this week will once again be the weekly crude inventory report, movement of the US dollar and FED policymaker's comments.

CURRENCIES

In the currency market, EURUSD remains steady after the release of mixed ZEW economic sentiment data. Meanwhile, the latest German inflation data showed that the annual inflation rate in Germany was at 8.6 percent in December of 2022, the lowest in four months. On the other hand, the British Pound regained momentum against the Euro and Japanese Yen following the release of a positive UK employment report.

GOLD

The precious metal struggled to regain momentum. As of this writing, the metal hovers below $1910. However, the overall sentiment remains bullish as investors and traders expect the Federal Reserve to ease up on its aggressive monetary policy tightening later this year.

Economic Outlook

On the data front, the UK reported a robust employment report. The data showed average earnings rose 6.4% in the three months to November compared to a year earlier while the Unemployment Rate remained unchanged at 3.7% in line with expectations.

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the immediate support for the Euro stands near the level of 1.0800 then 1.0770. On the flip side, the first resistance is at 1.0870, any break above this level will open at 1.0900 and 1.0930 minimum.



The important levels to watch for today: Support- 1.0800 and 1.0770 Resistance- 1.0850 and 1.0870.

GOLD: For today, the key support remains for the metal below 1900, a break below this level will confirm a possible move to 1892 then 1880. On the upper side, the key resistance is located around 1918/20, a break above this level will confirm a possible move to 1932 and 1938 minimum.



The important levels to watch for today: Support- 1900 and 1892 Resistance- 1918 and 1926.

Quote of the day - “I don’t want to spend my time trying to earn a lot of little profits. I want very, very big profits that I’m ready to wait for.” Philip Fisher.

Read more - https://gulfbrokers.com/en/daily-market-report-600

 

[syamfx2020]

Shares of the world’s largest airline by passenger capacity American Airlines (NASDAQ: AAL) closed above $17 last week and the stock jumped almost 25% so far this month. During the last week, the stock gained more than 10% after the company revealed that it expects its adjusted profits for the fourth quarter to be in the range of $1.12 and $1.17 per share, nearly double its previous prediction of 50 cents to 70 cents per share.

The Airline group is scheduled to report its fourth-quarter earnings on Thursday, January 26, before the market opens. In the third quarter, the company posted a record quarterly revenue of $13.5 billion in the third quarter and the net income was $483 million. The airline expects its fourth-quarter total revenue to be 11-13 percent higher versus the fourth quarter of 2019.

$AAL watch for a trendline breakout​

Technically the current price action signals suggest that a medium-term bullish trend remains intact. However, there is crucial trend line resistance to watch near $17.60/80. A sustained move above this resistance level could spark a breakout in the stock movement towards at least the $19/21 level. If sellers fail around this key area a decline and technical test back towards the $15.50/00 level should be expected.

Read the detailed article here - https://gulfbrokers.com/en/american-airlines-aal-watch-for-a-potential-breakout

 

[syamfx2020]

For today all eyes will be turning to the release of the monthly US Retail Sales figures and Producer Price Index (PPI) data. The Commerce Department is set to release its monthly retail sales report for December today, the retail sales figures are expected to have grown by a modest 0.1%. December’s PPI is expected to come out with an annual growth rate of 5.9%, slower than the 6.2% seen in November.

Investors and traders should closely monitor the release of both PPI and retail sales numbers to get clues on demand as the Federal Reserve aggressively raises rates to fight inflation.

EQUITIES

US stock futures remain under pressure after the hawkish comment from Richmond Fed Bank President Tom Barkin. The stopping point for Fed rate increases will depend on the path of inflation – Barkin said. On the other hand, the Japanese shares inch up to fresh monthly highs following the release of the Bank of Japan decision.

OIL

Crude oil futures edges higher as markets await the US PPI figures and weekly inventory report. Meanwhile, the upside momentum was lifted by positive comments from a top Chinese economic official. He said at the World Economic Forum that the world’s second-largest economy and top crude importer will likely rebound to its pre-pandemic growth trend this year as Covid infections passed their peak.

CURRENCIES

In the currency market, the British pound remains one of the strongest currencies this week supported by better-than-expected economic data. GBPUSD extend the gains on Wednesday Morning and reached a fresh monthly high of 1.2340 after Britain's CPI report showed the inflation rate slowed to 10.5% in December.

GOLD

The safe-haven metal reversed from the previous early session losses. As of this writing, the precious metal trades near the $1912 zone. Moving ahead, gold traders should closely monitor the comments from FED policymakers and also watch the release of US producer price index data.

Economic Outlook

On the data front, the Bank of Japan decided to leave the monetary policy unchanged, with its benchmark interest rate and 10-year government bond yield holding steady at historic lows of -0.1% and 0% respectively. The Bank also indicated that it “will not hesitate to increase easing when necessary” and that it “will be flexible in making large-scale bond purchases”

“We believe that the control of the yield curve works” and that this tool is “viable” in the long term – BOJ governor Kuroda said.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10.00

US –Retail sales: GMT – 13.30

US – PPI: GMT – 13.30

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: EURUSD reversed from the fresh weekly lows after the pair found buyers near 1.0770. In the long term, watch for weekly closing above 1.0900 or below the 1.0700 area, which will give a larger confirmation of direction in the long term.



The important levels to watch for today: Support- 1.0820 and 1.0800 Resistance- 1.0870 and 1.0900.

GOLD: For today, If the bullish momentum continues then the next upside level is to watch $1915 and $1920. On the other hand, the next immediate support prevails at $1900, a further breakout of $1895 can lead the metal towards $1885/00 levels.



The important levels to watch for today: Support- 1900 and 1895 Resistance- 1915 and 1920.

Quote of the day - “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.” - Paul Tudor Jones.

Read more - https://gulfbrokers.com/en/daily-market-report-601

 

[syamfx2020]

It’s Netflix's (NASDAQ: NFLX) earnings day. The streaming giant will report its fiscal fourth-quarter results after today's closing bell. The company is expected to post quarterly earnings of $0.58 per share and revenues are expected to be $7.8 billion. Netflix expects to gain 4.5 million new streaming customers in Q4, compared with 8.3 million in the year-earlier quarter.

In the company's most recent earnings report, released on October 18, 2022, Netflix easily beat both its earnings per share (EPS) and revenue estimates. The streaming giant reported 2.41 million net new paid subscribers in Q3. As a result, the stock gained more than 30% in the last 3 months. The stock has performed erratically in the final months of 2022 but overall has dropped by a wide margin. It will be interesting to see how the company’s Q4 results look and the impact they could have on the share price.

EQUITIES

Dow Jones and other US indices slumped sharply on Wednesday late session is driven by hawkish comments from Federal Reserve policymakers. St Louis Fed President James Bullard said policymakers should raise the policy rate above 5 percent "as soon as possible" before the end of rate hikes in the fight against inflation. Fed's Mester said policy rates should rise a little bit above the 5% to 5.25% range projected by policymakers for the end of 2023.

OIL

Crude oil futures retreat from the weekly highs, falling on a rise in recession fears following the release of weak US economic data. During the previous session, the oil prices climbed to fresh monthly highs on speculation regarding possible production cuts in Russia. Meanwhile, the API inventory data showed that US crude inventories increased by 7.6 million barrels last week.

CURRENCIES

In the currency market, the dollar index, which measures the currency against six major peers finally regained momentum supported by hawkish remarks from Federal Reserve officials. The Australian dollar plunged to a fresh weekly low against the US dollar after the release of disappointing December jobs data. The recent data showed Australia’s jobless rate increased to 3.5% in December 2022, compared with market estimates of 3.4%.

GOLD

The precious metal struggling to regain upside momentum as the market participants and traders are boosting bets for the aggressive pace of Federal Reserve tightening after the hawkish comments from FED members. On Wednesday, the metal jumped back above $1920 after weak economic data fueled recession worries.

Economic Outlook

On the data front, US retail sales report posted a bigger decline than expectations for December. Retail sales contracted more than expected by 1.1 percent in December. While US PPI inflation fell further in December to 6.2%, the most since the start of the pandemic.

Moving ahead today, the important events to watch:

Eurozone – ECB meeting minutes: GMT – 12.30

US –Housing starts and building permits: GMT – 13.30

US – Philly FED index: GMT – 13.30

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the key resistance for Euro is 1.0850, a break above this level will confirm a possible move to 1.0880/1.0900. On the downside, any meaningful pullback now seems to find some support near the 1.0800 and then 1.0770 zones, below which the slide could extend further towards the 1.0850 followed by 1.0830.



The important levels to watch for today: Support- 1.0800 and 1.0750 Resistance- 1.0850 and 1.0900.

GOLD: Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, if the bearish momentum continues the key support areas to watch are 1900 and 1885. On the upper side, however in case, if the metal manages to settle above 1930, it will gain upside momentum and head towards the next resistance level at 1945/50.



The important levels to watch for today: Support- 1900 and 1885 Resistance- 1918 and 1925.

Quote of the day - “We don't prognosticate macroeconomic factors, we're looking at our companies from a bottom-up perspective on their long-run prospects of returning.” —Mellody Hobson.

Read more - https://gulfbrokers.com/en/daily-market-report-602

 

[syamfx2020]

Bitcoin price extended its increase and surged above $21600 early this week, which is the highest level since September 2022. The strong upside momentum was boosted after the investors were convinced that the Federal Reserve would pause its rate-hike cycle in early 2023 and prepares to slow its current policy tightening pace following a solid decrease in December’s inflation data.

While the last 2 sessions we saw that the price of Bitcoin and other cryptocurrency pairs struggling to break new highs following the release of weak economic data added to worries about a looming recession. The latest US economic data showed the US retail sales report posted a bigger decline than expected for December. US Industrial Production declined by -0.7% in December, the biggest decline since Sept 2021.

The prices also came under demand pressure after the Federal Reserve officials reiterated their commitment to keeping raising interest rates. Market expectations are now for a quarter of one percent (25bp) interest rate hike on February 1. Moving ahead, the overall momentum is expected to remain mixed as the investors are worried as there is no clear timeline about when rate hikes are likely to end and how deep the recession will be.

$BTCUSD short-term technical outlook​

From a technical perspective, as long as the price holds above $20,000 levels, $BTC could see a resumption of the upside move. On the upper side, the key resistance level for the pair remains above $21,600, then the stronger resistance is $22,600, which is important to be stable above it for a continuing rise to $25,000 level. On the downside, in case the price is close below the key $20000 area, the slump will quickly extend toward the $19,300 then $18,800 mark.

Check out the original article here - https://gulfbrokers.com/en/bitcoin-pause-post-inflation-rally-on-recession-fears

 

[syamfx2020]

EURUSD again rebounded back to above 1.0850 on Friday supported by hawkish cues from ECB December meeting accounts. The European Central Bank published the minutes from its December meeting on Thursday. The minutes showed a large number of members of the European Central Bank's Governing Council were initially in favor of raising interest rates by 75 basis points (bps) at the December meeting.

Moving ahead, the traders and investors waited to hear from the ECB President Christine Lagarde, to try and understand how the ECB responds to the recent slowdown in eurozone headline inflation.

EQUITIES

US stock futures slightly regained momentum on Friday Morning after the streaming giant Netflix reported stronger-than-expected subscriber growth in the fourth quarter, adding 7.66 million net new subscribers, well ahead of the 4.5 million the company had projected. Netflix stock jumped more than 7% in after-hours trading Thursday, after shedding nearly 3% of its value during regular trading.

OIL

Crude oil prices rebounded back to near the weekly highs despite the release of weak oil inventory data from API and EIA. On Thursday, the EIA inventory data showed the US crude inventories rose by 8.408 million barrels in the week ended January 13th, compared with market expectations of a 0.593 million draw.

CURRENCIES

In the currency market, the British pound reversed from the early gains against the US dollar and euro following the release of weaker-than-expected UK retail sales data. Commodity-linked currencies such as the Australian and Canadian dollars inched toward fresh session highs as the gold price hovers near the 9-month highs.

GOLD

The precious metal rose to a fresh weekly high as Investors have been buying into the safe-haven metal as global market sentiment remains cautious. However, today the gold traders should continue to monitor the comments from FED policymakers Philadelphia Fed President and dove Patrick Harker and Governor Christopher Waller.

Economic Outlook

On the data front, the UK reported disappointing retail sales figures. Retail sales volumes fell by 1% in December from November, the Office for National Statistics said. Excluding auto fuel, retail sales decreased by 1.1 percent, which was bigger than November's 0.3 percent fall.

Moving ahead today, the important events to watch:

Canada – Retail Sales: GMT – 13.30

US – Existing home sales: GMT – 15.00

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The pair holding the early gains against the dollar. if the bullish momentum continues the next upside level to watch is in the 1.0860/80 zone. On the flip side, the immediate support at 1.0800 followed by 1.0760.



The important levels to watch for today: Support- 1.0800 and 1.0760 Resistance- 1.0850 and 1.0880.

GOLD: Gold price trades steady above $1930. If the bullish momentum continues the next upside levels to watch are $1940 and $1945. On the downside, any meaningful pullback now seems to find some support near the $1925 zones, below which the slide could further get extended towards the $1920/18 region.

The important levels to watch for today: Support- 1925 and 1918 Resistance- 1940 and 1945.

Quote of the day - I have found that when the market’s going down and you buy funds wisely, at some point in the future, you will be happy. You won’t get there by reading. Now is the time to buy. – Peter Lynch.
Read more - https://gulfbrokers.com/en/daily-market-report-603

 

[syamfx2020]

Precious metal and commodities concluded their final trading session of the last week on a modestly positive note while major U.S. indexes closed mixed on Wall Street after several Federal Reserve officials flagged the likelihood of continued interest rate hikes despite the soft inflation signals.

This week the economic calendar will bring investors the fourth quarter US GDP report, PCE price index and durable goods orders data. The main event on the calendar for monetary policy this week is the meeting of the Bank of Canada on Wednesday. While Chinese markets will be shut for China's week-long Lunar New Year holiday.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Logitech, Tesla, Microsoft, Intel, Boeing, Mastercard and Visa.

GOLD

The precious metal hit a fresh 8-month high as Investors have been buying into the safe-haven metal as global market sentiment remains cautious. The metal also firmed up on sustained investment as well as jewellery demand supported by bullish overseas cues. However, the metal struggles to find long-term direction as it continues to move up and down in a narrow channel. This week, the main drivers for the precious metal remain the comments from the FED policymakers and the movement of the US dollar.



For this week, 1940 remains the key resistance to watch. However, as long as the metal is trading above 1900, a pullback rally is likely to continue up to 1950/60. On the downside, the first nearest support level is located in 1918. In case it breaks below this level, it will head towards the next support level which is located near 1900 then 1890.

DOLLAR INDEX

The dollar index, which measures the greenback against six other major currencies initially regained upside momentum last week supported by hawkish comments from FED policymakers but the index failed to extend gains beyond 103 after the recent US economic data showed retail sales, producer prices, and industrial production fell more than expected in December. The greenback is expected to be extra volatile this week as the US will release the latest durable goods orders and GDP data.



Technically the current price action signals suggest that a medium-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 101.50 and 101 if the bearish momentum continues. On the flip side, the USD needs to stay above 103 to have a chance to develop upside momentum in the near term. If the greenback breaks and closes above 103, the next upside level to watch is 103.50 then 103.80.

EURUSD

The currency started with a strong bullish note on Monday and hit a fresh 9-month high of 1.0925. The upside momentum was boosted after European Central Bank president Christine Lagarde reiterated that further interest rate raises would follow in order to bring inflation back to the ECB’s two-percent target. The market is pricing in a 90% chance the ECB increases rates by 50 basis points at their February meeting. For Euro this week, the economic data is limited to the manufacturing data from Eurozone and Germany.



This week, the key resistance is around 1.0930, a break above this level will confirm a possible move to 1.1000 then 1.1030 minimum. On the downside, any meaningful pullback now seems to find some support near the 1.0850 and 1.0800 zones, below which the slide could further get extended towards the 1.0770 and 1.0730 regions.

DOW JONES

Dow Jones and other US stock indexes ended mixed last week after several Federal Reserve officials maintained that the Fed would need to maintain its hawkish tone in the next few months. This week, the US Personal Consumption Expenditures (PCE) Price Index data will likely have a significant effect on the Dow Jones and other US indices because the PCE data is said to be the Federal Reserve’s preferred measure of inflation.



Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 32,900 and 32,600 if the bearish momentum continues. On the flip side, the index needs to stay above 34,000 to have a chance to develop upside momentum in the near term. If the dow breaks and closes above 34,000, the next upside level to watch is 34,400 then 34,700.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-64

 

[syamfx2020]

Shares of the tech pioneer Microsoft (NASDAQ: MSFT) post modest gains last week despite the announced layoffs of 10,000 workers. Microsoft is scheduled to report its Q4 earnings on Tuesday, January 24, after the market closes. The company is expected to post quarterly earnings of $2.31 per share and revenues are expected to be $53 billion.

The US IT giant recently announced an agreement for a third round of multi-billion-dollar investment in OpenAI, the company behind ChatGPT. Microsoft will invest $10 billion in OpenAI. "Our agreement with OpenAI revolves around a common goal, which is to develop AI responsibly and democratize it as a new technology platform," Microsoft CEO Satya Nadella said.

$MSFT key technical levels to watch today:

Support: $240 and $234

Resistance: $247 and $251

EQUITIES

The major indices of the US stock markets showed positive volatility and closed with significant gains on Monday on hopes for less aggressive rate hikes from the US central bank. Moving ahead, today the investors will shift their focus to the ongoing Q4 earnings season, some of the largest US companies will report their latest quarterly numbers today including Microsoft, Johnson and Johnson and General Electric.

OIL

Crude oil futures trade flat on Tuesday. While the overall momentum remained bullish throughout last week boosted by the expectations of improved demand growth in China and hopes of less aggressive rate hikes in the United States. The oil prices also received additional buying pressure after the IEA and OPEC offered a bullish outlook for 2023, saying that the reopening of the Chinese economy will boost demand.

CURRENCIES

In the currency market, EURUSD slightly reversed from the early gains after PMI data released showed that the manufacturing activity in Germany didn’t improve in January. Manufacturing PMI in Germany decreased to 47 points in Jan from 47.1 in December, compared to market forecasts of 47.9. Technically, the medium-term trend remains supportive If the US dollar regains upside strength this week, we could see an extension to the weakness in the euro.

GOLD

The precious metal broke above $1940 on Tuesday morning supported by the weaker US dollar and softening US economic data. However, global cues such as the FED's hawkish stance, trends in dollar strength and US economic data are expected to drive investors' sentiments in the remaining days of this week.

Economic Outlook

On the data front, the UK released mixed PMI data. UK Manufacturing PMI improves to 46.7 in January from 45.3 in December while the services PMI fell to 48 in January of 2022 from 49.9 in December, the lowest in two years.

Coronavirus update:

Worldwide, more than 672 million people have been confirmed infected and more than 6.74 million have died. The United States has confirmed over 103 million cases and has had more than 1.129 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the key resistance is located above the last week's high around 1.0900, a break above this level will confirm a possible move to 1.0930/50. On the downside, any meaningful pullback now seems to find some support near the 1.0850/30 zones.



The important levels to watch for today: Support- 1.0850 and 1.0830 Resistance- 1.0900 and 1.0930.

GOLD: For today, the metal is supported at the 1932/30 area, any break below this level will open the doors to 1925/22. On the flip side, if the gold price breaks above 1942 it would open doors toward the next resistance area of 1950/53.



The important levels to watch for today: Support- 1930 and 1925 Resistance- 1942 and 1950.

Quote of the day - When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom - Peter Lynch.
Read more - https://gulfbrokers.com/en/daily-market-report-604

 

[syamfx2020]

After struggling to find a bottom amid the stock market correction, shares of Boeing regained strong upside momentum in the last 4 months and bounced more than 65%. The bullish sentiment was boosted by the recovery in global air travel and strong demand for its planes.

Boeing (NYSE: BA) is due to report its fourth quarter figures before the markets open on Wednesday, January 25. Analysts expect second-quarter earnings per share of $0.20 and revenue of $20 billion. On October 26, 2022, Boeing released its fiscal third-quarter 2022 results for September 2022, the company posted a loss of $6.18 per share along with revenue of $16.0 billion. During the last week, the stock closed slightly lower, but the stock might bounce to the next key resistance area of $230 if these key numbers of top expectations in the earnings report.

EQUITIES

Wall Street ended mixed on Tuesday following the release of mixed earnings results from the tech giant Microsoft. During the last quarter, Microsoft earned $52.7 billion in revenue, which was up 2 percent from last year, but a slight miss from the $52.9 billion analysts expected. Profits also fell by 12 percent to $16.4 billion.

On the earnings front, the companies scheduled to release their last quarter financial results today will be Tesla, Boeing and IBM.

OIL

Oil prices slipped on Wednesday morning after American Petroleum Institute figures showed that U.S. crude stockpiles rose more than expected, and focus shifted to the EIA crude inventories report which is set to be released later today. The API data showed that US crude inventories rose by 3.38 million barrels last week, much more than forecasts for a 1.6-million-barrel increase.

CURRENCIES

In the currency market, the Canadian dollar is holding its impressive gains against the US dollar. the recent loonie’s strength is primarily due to a recovery in oil prices. Moving ahead to the North American session, the CAD traders should closely monitor the Bank of Canada monetary policy decision. The market participants expect that the bank will continue hiking interest rates in a bid to counter the rising inflation.

GOLD

The precious metal traded flat on Wednesday morning as investors await further cues from the US Fed regarding its rate hike trajectory, as the US Personal Consumption Expenditures (PCE) Price Index data will release on Friday. The PCE data is said to be the Federal Reserve’s preferred measure of inflation.

Economic Outlook

On the data front, the Asian countries Australia and New Zealand reported stronger-than-expected inflation data. Australia’s inflation accelerated to the fastest pace in 32 years while New Zealand's inflation remained unchanged from Q3. The annual inflation rate in Australia climbed to 7.8% in Q4 of 2022 from 7.3% in Q3, above market forecasts of 7.5%.

Moving ahead today, the important events to watch:

Canada – BOC interest rate decision and statement: GMT – 15.00

US – EIA crude inventories: GMT – 15.30

Coronavirus update:

Worldwide, more than 672 million people have been confirmed infected and more than 6.74 million have died. The United States has confirmed over 103 million cases and has had more than 1.129 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the first key support level is located at 1.040. In case it breaks below this level, it will head towards the next support level which is located near 1.0800. On the upper side, If the pair regains strong upside momentum and press back above 1.0900 then the key resistance area to watch is 1.0950.



The important levels to watch for today: Support- 1.0850 and 1.0830 Resistance- 1.0910 and 1.0950.

GOLD: For today, the key resistance is located around $1940, a break above this level will confirm a possible move to 1950/52. On the downside, any meaningful pullback now seems to find some support near the 1922/18 zones.



The important levels to watch for today: Support- 1925 and 1922 Resistance- 1935 and 1940.

Quote of the day - “The hardest part of investing is holding on through difficult periods and taking short-term pain so you can have long-term gains” — Jim Cramer.
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