Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

I love your reviews, it looks really professional and competent. And most importantly, you focus on those assets that really deserve attention. I like the fact that it's always mono to find something useful to work with. You're doing a lot of work.

Thank you.

 

[syamfx2020]

Now it is possible to include this metal in the long term and use it for short positions. And each time the movement is strong enough that you can organize active work and can fully concentrate on this asset. It looks promising...

$1680 important to watch.

 

[syamfx2020]

The US dollar fell to 11- week low ahead of NFP report. The dollar depreciated further on Thursday after EURO edged higher responding to the ECB decision to increase its bond-buying programme by a higher-than-expected €600 billion. The dollar index dropped from 100.60 on May 14 to today's low of 96.40. The traders and investors now await the US jobs report expected to be released at 12:30 GMT.

EQUITIES

European stocks extended gains on Friday on hopes for a quicker economic recovery after the European Central Bank delivered a larger increase in its bond-buying programme. South Korean shares gained for a fifth straight session; with the benchmark index Kospi ending 0.2% higher at 2151.18.

OIL

Crude oil prices edged higher after reports that Iraq has removed its objections to OPEC+ extending its petrol production cuts. As per the recent update, OPEC and allies led by Russia, a grouping known as OPEC+, will meet on Saturday to discuss extending output cuts.

CURRENCIES

EUR/USD ignored weak April German factory orders data and climbed to 3-month high 1.1380 ahead of NFP. The factory orders plunged -25.8% MoM in April of 2020, compared with market expectations of a -19.7%. This was the steepest decline in factory orders since the series began in January 1991. The pound surged to a 2-month high against the dollar as Brexit negotiations continue, traders, hoping that the UK and the EU might reach a compromise on fisheries and trade rules.

GOLD

Gold price trading strong ahead of US jobs report. The yellow metal also supported by geopolitical tensions between the US and China and widespread protests in major US cities.

Economic Outlook

On Thursday, European Central Bank delivered a €600 billion increase in its bond-buying programme and extended it by six months, to June 2021. Meantime, the US weekly jobless claims rose 1.8 million last week, lower than the previous weeks’ average, but the continuing claims rose above 21 million.

Moving ahead today, the important events to watch:

• US Non-farm payrolls job report – 12.30 GMT
  
  
• US unemployment rate – 12.30 GMT
  
  
• Canada Ivey PMI- 14.00 GMT

Coronavirus Update:

Coronavirus cases have crossed 6.7 million marks worldwide and 390k deaths. The United States is the worst-hit country, with 1,760,740 cases and 103,472 deaths. Till now, coronavirus has affected 213 countries and territories around the world. Meanwhile, Iran announced 3,574 new coronavirus infections on Thursday, it's highest daily count since the outbreak began in February.

Technical Outlook

GOLD: The gold price trading above $1700 during the European session, Investors now wait for the U.S. NFP data due later today.

The important levels to watch for today: Support- $1700 and $1688 Resistance- $1720 and $1727.

EUR/USD: The pair retreats from 3- month high of 1.1380 and currently trading below 1.1330.

The important levels to watch for today: Support- 1.1280 and 1.1190 Resistance- 1.1380 and 1.1490.

Quote of the day: Save to invest, don’t save to save. The only reason to save money is to invest it- Grant Cardone.

 

[Talar]

I think that the world is just returning to its usual life and many projects, productions that were on pause again began to work in full, respectively, this asset again becomes in demand - accordingly, its price increases.

 

[sam.peters]

View attachment 54009commo
Oil prices may have stabilized after plunging in response to the coronavirus and the price has surged more than 80% this month as demand returned following the easing of lockdown restrictions in some countries. Demand and supply fundamentals are getting better which is helping the oil market to recover from the coronavirus plunge. Another factor involved in the oil price recovery after OPEC+ countries cut crude production by nearly 10 million BPD starting in May.

Last week the US oil prices climbed to the highest level since March 11th after the EIA data showed the US crude inventories dropped by 4.9 million barrels in the latest week, the biggest drop so far this year. Meantime, China’s total crude oil imports in April amounted to 9.84 million BPD, up from 9.68 million BPD in March. China’s imports of Russian oil have risen 18 per cent in April year-on-year, according to Reuters. This month, for the first time since November, Chinese refiners will also receive their first crude cargo from the US.

This week Oil prices started with a positive note after the coronavirus vaccine news and Russia reported that its oil output dropped to its target of 8.5 million barrels per day for May and June. Moving ahead to the mid of the week investors continue to follow the new updates from the US and China trade talks and weekly oil inventory reports. Overall the movement remained bullish so far this week on optimism that the worldwide business reopening should boost the basic energy demand. Oil prices trading bearish on Wednesday as the sentiment soured once again escalating tensions between the US and China.

The WTI oil price recovered from the April’s lows, now consolidating after printing fresh May’s highs. At the time of writing the price dropped around 1% from the daily high. WTI is usually extracted from US oil fields in Texas, Louisiana and North Dakota and the price is a benchmark for US oil prices.

Conclusion

So far this year the oil prices went through difficult times. But we hope the combination of production cuts and prospects of increasing oil demand continues to provide some support to crude oil prices. The IEA expects oil consumption eventually rebounding past pre-virus levels as lockdown restrictions ease, oil demand is expected to improve across several countries worldwide. Meanwhile, OPEC is scheduled to hold its next meeting early next month when supply cuts towards maintaining oil prices could be discussed.

Crude oil prices surge to 2-month high; What causes the oil price recovery?

Oil prices may have stabilized after plunging in response to the coronavirus and the price has surged more than 80% this month as demand returned following the easing of lockdown restrictions in some countries. Demand and supply fundamentals are getting better which is helping the oil market to...

gulfbrokers.com

I'm curious as to what you think Oil has in store for the next few months in terms of price?

 

[syamfx2020]

I'm curious as to what you think Oil has in store for the next few months in terms of price?

we need to watch every week API and EIA inventory report for further information.

 

[syamfx2020]

View attachment christopher-burns-Wiu3w-99tNg-unsplash.jpgl
During European session on Monday, the official data showed German industrial production plunged a record 17.9% in April amid factories shutdowns due to the coronavirus pandemic. The 17.9% decline reported by the Economy Ministry followed an 8.9% drop in March when Germany started shutting down.

EQUITIES

Japanese shares edged higher on Monday, the optimism remained positive as Japan’s parliament begins deliberating a second supplementary budget to fund part of a fresh $1.1 trillion stimulus package. While European stocks traded lower on Monday after German industrial production reported worse than expected.

OIL

Crude oil prices trading steady on Monday after major producers agreed to extend a deal on record output cuts to the end of July. On Monday Oil traders and investors looking forward to the OPEC+ presser expected to be released at 10:00 AM GMT.

CURRENCIES

In the currency markets, US dollar trading slightly weaker on Monday, the currency pair rebounded on Friday from 11-week supported by upbeat US monthly jobs report. Meanwhile, the Pound trading session low of 1.2640 after the pair surged to 3- month high last week. The UK Prime Minister Boris Johnson is expected to update cabinet ministers on Tuesday on the next stage of lifting coronavirus restrictions.

GOLD

On Friday the yellow metal price dropped to near $1670 after better than expected US NFP report. The price rebounded on Monday after China’s trade data reported on Sunday a decline in exports and imports during the month of May and a slower-than-expected 0.6% contraction in Japanese GDP in the first quarter versus -0.9%.

Economic Outlook

The NFP data revealed on Friday that the US economy added 2.5 million new nonfarm jobs in May, versus 8 million job losses expected by analysts and unemployment rate fell from 14.7% to 13.3% (expected 19.7 %). Over the weekend, China’s trade data was released, which revealed a decline in exports and imports during the month of May.

This week Investors will likely keep a look at the economic releases which includes FOMC rate decision and press conference, US crude oil inventory report, US weekly jobless claims, Euro-zone and UK GDP etc.

Coronavirus Update:

Coronavirus cases have crossed 7-million mark worldwide with 405,272 deaths. The United States continues to remain the worst-hit country with positive cases toll at 1,988,544 including 112,096 deaths. Total cases in Saudi Arabia exceeded 100,000 on Sunday as the kingdom struggles to get to grips with a rise in new infections over the past 10 days.

Technical Outlook

GOLD: The gold price slightly recovered from the last week low and trading below $1700 on Monday.

The important levels to watch for today: Support- $1680 and $1665 Resistance- $1700 and $1708.

AUD/USD: The pair trading just under 0.70 and entering into a consolidation phase. Any break above 0.70 which would open doors towards 0.7030 and 0.7055. On the other side, the first important support to watch 0.6930 and a breach below this level will open 0.6850.

The important levels to watch for today: Support- 0.6930 and 0.69 Resistance- 0.7030 and 0.7055.

Quote of the day: The market does not know you exist. You can do nothing to influence it, you can only control your behaviour- Alexander Elder.

Read more- https://gulfbrokers.com/en/daily-market-report-100

 

[adamcantor]

View attachment 54009commo
Oil prices may have stabilized after plunging in response to the coronavirus and the price has surged more than 80% this month as demand returned following the easing of lockdown restrictions in some countries. Demand and supply fundamentals are getting better which is helping the oil market to recover from the coronavirus plunge. Another factor involved in the oil price recovery after OPEC+ countries cut crude production by nearly 10 million BPD starting in May.

Last week the US oil prices climbed to the highest level since March 11th after the EIA data showed the US crude inventories dropped by 4.9 million barrels in the latest week, the biggest drop so far this year. Meantime, China’s total crude oil imports in April amounted to 9.84 million BPD, up from 9.68 million BPD in March. China’s imports of Russian oil have risen 18 per cent in April year-on-year, according to Reuters. This month, for the first time since November, Chinese refiners will also receive their first crude cargo from the US.

This week Oil prices started with a positive note after the coronavirus vaccine news and Russia reported that its oil output dropped to its target of 8.5 million barrels per day for May and June. Moving ahead to the mid of the week investors continue to follow the new updates from the US and China trade talks and weekly oil inventory reports. Overall the movement remained bullish so far this week on optimism that the worldwide business reopening should boost the basic energy demand. Oil prices trading bearish on Wednesday as the sentiment soured once again escalating tensions between the US and China.

The WTI oil price recovered from the April’s lows, now consolidating after printing fresh May’s highs. At the time of writing the price dropped around 1% from the daily high. WTI is usually extracted from US oil fields in Texas, Louisiana and North Dakota and the price is a benchmark for US oil prices.

Conclusion

So far this year the oil prices went through difficult times. But we hope the combination of production cuts and prospects of increasing oil demand continues to provide some support to crude oil prices. The IEA expects oil consumption eventually rebounding past pre-virus levels as lockdown restrictions ease, oil demand is expected to improve across several countries worldwide. Meanwhile, OPEC is scheduled to hold its next meeting early next month when supply cuts towards maintaining oil prices could be discussed.

Crude oil prices surge to 2-month high; What causes the oil price recovery?

Oil prices may have stabilized after plunging in response to the coronavirus and the price has surged more than 80% this month as demand returned following the easing of lockdown restrictions in some countries. Demand and supply fundamentals are getting better which is helping the oil market to...

gulfbrokers.com

I neverbother too much with this til now, thanks for this mate. I am new to oil trading

 

[syamfx2020]

During the weekend, the 179th meeting of the OPEC was held via e-conferencing on Saturday, 6th of June, 2020, under the leadership of its president, Mohamed Arkab, Minister of Energy in Algeria.

The OPEC led by Saudi Arabia and other key oil producers has agreed to extend the 9.7 mbpd deal to the end of July, instead of reducing it to 7.7 million bpd widely projected by experts. The current cut, which went into effect on 1st of May, 2020 will now run until the 31st of July, 2020 in hopes of stabilizing oil markets. This agreement is expected to further bolster global oil prices and reduce supplies weighing on market outlook.

Earlier Asian session on Monday, oil prices were up more than 1% after OPEC and major producers agreed to extend a deal on record output cuts to the end of July. The earlier supply cuts and a rebound in demand have helped oil prices double since April. The oil prices also supported by data showing that China's crude imports hit an all-time high in May.

Oil prices reverse early gains

Meantime during the European session on Monday, Saudi Arabia said at a press conference that those extra reductions will last just one month as planned, wouldn’t continue with additional, deeper curbs after June. Oil prices reversed from the earlier gains and trading session low, with US oil futures falling to $38.80 a barrel and Brent crude to $41.80 a barrel after the announcement. The Saudi minister also said that Iraq will deliver only 80% of pledged cuts in June and will compensate later.

On Saturday, Saudi Arabian Energy Minister Abdulaziz bin Salman said: “with the reopening of economies with high oil consumption after quarantine, the demand is returning, but the difficulties continue and we have not yet survived the danger”. “Today we have grounds to be cautiously optimistic about the future, but we are not out of the woods yet and challenges ahead remain to be seen,” he added.

The next OPEC meeting will take place in the usual offline format in Austria's Vienna on November 30, the organization said on Saturday in a press release. "The Conference confirmed that its next Ordinary Meeting will convene in Vienna, Austria, on 30 November 2020, and noted that September 2020 will mark the 60 Year Anniversary since the founding of OPEC in Baghdad in 1960," the press release read.

Read more- https://gulfbrokers.com/en/oil-prices-slide-as-opec-meeting-concluded-with-mixed-outcomes

 

[Alex Bainbridge]

Very compressive report thanks always good to check at the start of another trading week