Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Euro will have a busy day today, all eyes will turn to the European Central Banks monetary policy decision, due at 11.45 GMT, ECB is expected to provide clues about the timeline on interest rate hikes amid rising inflationary pressures. The EURUSD slightly retreats from the highs while the currency pair carries the momentum initiated during the previous session as the traders anticipate multiple rate hikes from the ECB for the rest of the year.

During the April ECB meeting, the ECB president Lagarde Christine said that the bank would raise interest rates “some time after” ending its pandemic stimulus efforts later this year.

EQUITIES

Asian shares traded lower on Thursday despite the release of better-than-expected Chinese economic data. While European shares opened slightly lower as investors awaited the outcome of the ECB meeting.

OIL

Crude oil futures reversed from the fresh monthly highs that followed a surprise increase in U.S. crude inventories. The EIA data showed the US crude inventories unexpectedly rose by 2.025 million barrels last week. However, the overall momentum remained bullish for this whole week.

CURRENCIES

In the currency market, the US dollar remained in demand as the high inflation rates continue to encourage safe-haven demand. The British pound fell below 1.2500 against the USD and the currency pair remains undecided as to which way its next directional break will be after the British Prime Minister Boris Johnson survived the no-confidence vote on Monday.

GOLD

The precious metal was largely subdued on Wednesday as investors awaited U.S. consumer price data for cues on whether inflation was peaking. On Tuesday, the US Treasury Secretary, Janet Yellen said that inflation is likely to remain high, I think that bringing inflation down should be our number one priority.

Economic Outlook

On the data front, China's exports rebounded strongly in May. Exports increased 16.9 percent on year in May, up from 3.9 percent in April. The Imports to China rose by 4.1 percent year-on-year in May, compared to the market estimates of 2.0 percent.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision and statement: GMT – 11.45

Eurozone – ECB press conference: GMT – 12.30

US – Jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 531 million people have been confirmed infected and more than 6.29 million have died. The United States has confirmed over 84 million cases and has had more than 1008,400 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.0660. In case it breaks below this level, it will head towards the next support level which is located near 1.0640/20. On the upside, 1.0750 will act as an immediate and strong hurdle while 1.0780 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1.0660 and 1.0620 Resistance- 1.0780 and 1.0830.

GOLD: The yellow metal trading weaker below $1850 supported by $1840. Today, gold is again expected to face resistance around $1,860/62 along with the support around $1840 and $1835.



The important levels to watch for today: Support- 1840 and 1835 Resistance- 1862 and 1870.

Quote of the day - The act of saving and investing money regularly will significantly change the way you live your life in the future.

Read more - https://gulfbrokers.com/en/daily-market-report-508

 

[syamfx2020]

The king dollar extended the gains while the US stock futures drops ahead of the most awaited macro news of the week, the US inflation data. The Bureau of Labor Statistics is scheduled to report the Consumer Price Index figures at 12.30 GMT today. The market participants expect it to show inflation slowed a touch to 8.2% in May from 8.3% a month earlier.

Meanwhile, during the Asian session, the data showed China's annual inflation rate was at 2.1% in May 2022, unchanged from April's five-month high figure and compared with market forecasts of 2.2%.

EQUITIES

European and UK shares remain under pressure on Friday following the previous session's drop. The European shares ended lower on Thursday after the European Central Bank cuts its growth forecasts and signaled an interest rate hike in late July.

OIL

Crude oil futures traded flat on Friday but on Thursday the oil prices ended lower weighed down by the strong US dollar and sell-off in equity markets. The bearish momentum was also pressured by news that parts of Shanghai and Beijing went back on fresh COVID-19 partial lockdowns.

CURRENCIES

In the currency market, the Euro fell against the US dollar and British pound on Thursday after the European Central Bank failed to impress the traders with its hawkish comments. While USDJPY remains extra volatile, the currency pair slightly retreated from the 20-years highs.

GOLD

The precious metal continues to trade sideways as the investors are waiting for clues on peaking inflation and the path of future rate hikes. However, the metal expected to be rebound later today if a surprise drop in the US inflation numbers.

Economic Outlook

On the data front, the European Central Bank (ECB) on Thursday left key rates unchanged in its June monetary policy meeting.

Key highlights of ECB meet outcome

• The Governing Council intends to raise the key ECB interest rates by 25 basis points at its July monetary policy meeting.
• The Governing Council expects to raise the key ECB interest rates again in September.
• If the medium-term inflation outlook persists or deteriorates, a larger increment will be appropriate at the September meeting.
• High inflation is a major challenge for all of us. The Governing Council will make sure that inflation returns to its 2% target over the medium term.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12.30

Canada – Employment Report: GMT – 12.30

US – Michigan consumer sentiment: GMT – 14.00

Coronavirus update:

Worldwide, more than 533 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 85 million cases and has had more than 1010,500 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For Euro, the key support level is located at 1.0550. On the upside, 1.0630 will act as an immediate and strong hurdle while 1.0660 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1.0580 and 1.0550 Resistance- 1.0640 and 1.0690.

GOLD: For today, $1835 is the immediate support level, followed by $1826. On the upper side, gold is likely to find immediate resistance at $1852, any break above the $1852 level could lead the prices of the precious metal towards the next resistance levels of $1860 and $1870.



The important levels to watch for today: Support- 1835 and 1826 Resistance- 1852 and 1860.

Quote of the day - “The art of investing is not about figuring out what has already happened. It’s about anticipating the future and creating the future that others will read about in The Wall Street Journal.” – Joshua Rogers.

Read more - https://gulfbrokers.com/en/daily-market-report-509

 

[syamfx2020]

Global stocks and commodities started the new week on a bearish note on inflation worries ahead of the FOMC meeting. On Friday, the latest US inflation data, showed consumer prices are still surging and hit a new 40-year high in May. The inflation accelerated to 8.6% in May from 8.3% a month before. Moving ahead, the inventors are anxiously awaiting Wednesday’s decision by the Federal Reserve on interest rates. Markets are already pricing in 50 basis point hikes at the Fed's next two meetings.

GOLD

The precious metal slightly retreated from the previous session highs on Monday. At the time of writing, the metal trades near 1860. On Friday, the Gold price dropped to a fresh month low of 1825 but later the metal rebounded and bounced to more than 40$ as demand for the safe-haven metal continued to rise against soaring inflation.



Technically the overall momentum remains mixed. On the downside, 1840 is the crucial support area to watch. If the pair breaks below 1840, the slump will quickly extend toward the $1830/20 mark. On the upper side, if the metal break above $1880 it would open doors towards the next resistance area of $1895 and above that $1910 is next.

DOLLAR INDEX

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, trades above 104.50 on Monday morning. The dollar registered strong gains against the Euro and British pound, lifted by safe-haven flows. Moving ahead, the future direction of the USD will depend on the FED decision which will release on Wednesday.



On the bullish side, the resistance stays above 105, and a break above this exposes the index towards the 106 level. On the flip side, rejection and pullback from the 105 resistance allow for a dip towards 103.90, with 103.30 and 103 forming additional downside targets.

EURUSD

The EURUSD fell back to below 1.05 on Monday as traders ditched the euro in favour of the safe-haven dollar. The Euro failed to regain upside momentum after the European Central Bank surprised markets by signalling that it was likely to raise rates by half a percentage point in September. For this week, the main drivers for the Euro remain the movement of the US dollar and inflation data from Germany and the Eurozone.



Technically If the bearish momentum continues then the next downside level is to watch at 1.0450 and 1.0400. On the flip side, a breakdown through 1.0640 would negate that bias and suggest a test of the 1.0700 and 1.0770 resistance regions.

DOW JONES

The Dow Jones futures extended the decline on Monday. The strong bearish momentum is fueled by the enduring pressure from expectations of an aggressive US interest rate hike. Investors are also concerned that the central bank could cause a recession if it raises rates too high or too quickly.



The technical scenario is absolutely bearish after the last week's sell-off. While considering the recent bearish momentum the Dow may find strong support again below 30,700. On the upper side, in the short-term the first immediate resistance at 31,400 followed by 31,700/32,000.

Read more here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-34

 

[syamfx2020]

The American biotechnology giant Moderna (NASDAQ: MRNA) stock hit a fresh 52-week low of $115.61 on Monday ahead of the FDA advisory committee meeting to decide whether to give approval to Moderna's COVID-19 vaccine for young children.

The FDA Advisory Committee will vote on June 14 on whether Moderna’s vaccine can be used in six- to 17-year-olds. The committee is scheduled to consider whether to recommend the use of Moderna’s vaccine in children aged 6 months through five years on June 15th.

Moderna was the first drugmaker with an experimental COVID-19 vaccine to begin clinical testing in humans in the U.S. Moderna’s vaccine is currently available only to people 18 and older. On the other hand, Pfizer has also filed an application for authorization for children aged six months to four years. Pfizer is currently the only company with a COVID-19 vaccine for older US children, but no vaccines have been approved for children ages below 5.

FDA reviewers say the Moderna vaccine is safe and effective for children

Last week the reviewers with the Food and Drug Administration said that Moderna's COVID-19 vaccine is safe and effective for young children. Moderna’s vaccine was 51 percent effective in preventing symptomatic infection in children 6 months to 2 years old and 37 percent effective in children 2 to 5 years old. The FDA cautioned that estimates of the vaccine’s effectiveness were based on only a few cases of COVID-19.

“Available data support the effectiveness of the Moderna COVID-19 Vaccine in preventing symptomatic COVID-19 in pediatric age groups from 6 months through 17 years of age,” - the FDA staff said Friday.

$MRNA technical outlook​

As the stock market continues its downward slide but Moderna stock was holding extremely well compared to other biotech stocks in the last couple of weeks and this is probably because long-term holders keep accumulating. Technically the overall momentum remains bearish. However, there are chances the stock may eventually regain upside momentum but anyway it depends upon the FDA approval and upcoming earnings results.

In the long term, watch for weekly closing above $155 or below the $100 area, which will give a larger confirmation of direction in the long term.

Read the original blog here - https://gulfbrokers.com/en/is-the-moderna-stock-a-bargain-ahead-of-fda-decision

 

[syamfx2020]

Global stocks remain under pressure and continue its downward rally on Tuesday amid lingering concerns over the aggressive central bank tightening to bring inflation back under control. Now Investors are looking ahead to this week's central bank meetings to know how central banks will act to regain control of inflation.

• Federal Reserve monetary policy decision: Wednesday, June 15
• Bank of England policy meeting: Thursday, June 16
• Bank of Japan policy meeting: Friday, June 17

EQUITIES

European shares retreated from the early gains after the release of German inflation data. The data showed that consumer price inflation rose to 7.9 percent in May from 7.4 percent in April. On the other hand, the Asian shares ended higher on Tuesday.

OIL

Crude oil futures trade near the session highs on Tuesday supported by a drop in Libyan oil exports. Moving ahead, the oil investors should closely monitor the release of weekly US inventory data from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday.

CURRENCIES

In the currency market, the Euro slightly recovered from the early losses against the US dollar amid expectations of an interest rate hike from the ECB following the release of the hottest German inflation data. Meanwhile, the British pound struggling to find the upside momentum after the release of mixed UK employment data.

GOLD

The precious metal dipped for a second successive day and trades near $1820 as the traders anticipated an aggressive interest rate hike from the US Federal Reserve when it concludes a two-day policy meeting on Wednesday.

Economic Outlook

On the data front, the latest UK employment report showed the jobless rate in the UK edged higher to 3.8% in the three months to April 2022 from 3.7% in the three months to March and compared to forecasts of 3.6%.

Coronavirus update:

Worldwide, more than 535 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 85.5 million cases and has had more than 1011,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.0400. In case it breaks below this level, it will head towards the next support level which is located near 1.0350. On the upper side, 1.0490 will act as an immediate and strong hurdle while 1.0530 will be a critical resistance zone.



The important levels to watch for today: Support- 1.0400 and 1.0350 Resistance- 1.0490 and 1.0530.

GOLD: Technically the current price action signals suggest that the 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 1810 and 1800 if the bearish momentum continues. On the flip side, the first immediate resistance is near 1830 followed by 1836.



The important levels to watch for today: Support- 1812 and 1800 Resistance- 1830 and 1836.

Quote of the day - “In many ways, the stock market is like the weather in that if you don’t like the current conditions, all you have to do is wait a while.” - Low Simpson.

Read more - https://gulfbrokers.com/en/daily-market-report-510

 

[syamfx2020]

The US Federal Reserve meeting started on Tuesday, the two-day policy meeting that will conclude later today. The traders and investors anxiously waiting for the central bank’s interest-rate decision and views on the economic outlook. Several market participants expect the FED will increase the interest rate of 75 bps to tame surging inflation. While the investors also strongly waiting for the comments on inflation and future interest path from chairman Jerome Powell.

EQUITIES

European stocks rebounded from the previous session's lows ahead of the European Central Bank meeting. On the other hand, the US stock futures remain under pressure as investors braced themselves for a more aggressive interest rate hike by the Federal Reserve.

OIL

Crude oil prices fell to the fresh weekly low driven by the strong US dollar, equity market sell-off and weak API inventory data. The API data showed the US crude inventories increased by 0.736 million barrels in the week ended June 10th, compared to market expectations of a 1.314 million fall.

CURRENCIES

In the currency market, the Euro rebounded back to above 1.05 after the ECB said it will hold an emergency meeting today to discuss current market conditions. “The Governing Council will have an ad-hoc meeting on Wednesday to discuss current market conditions,” an ECB spokesperson said.

GOLD

The precious metal struggling to find upside momentum as traders and investors waiting for the Federal Reserve meeting outcome. Meanwhile, the metal slightly rebounded from the weekly lows after the USD gives back some of the gains.

Economic Outlook

On the data front, the US producer price index increased 0.8% mom in May of 2022, following a 0.4% rise in April. The core PPI, which excludes food and energy prices, was up 0.5%.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

US – EIA crude inventories: GMT – 14.30

US – FOMC interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 535 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 85.5 million cases and has had more than 1011,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The pair needs to stay above 1.0500 to have a chance to develop upside momentum in the near term. If the price break and closes above 1.0500, the next upside level to watch is 1.0550 then 1.0600/40. On the downside, if the index break below this week's low of 1.0400 the next immediate downside area is to watch 1.0350/40.



The important levels to watch for today: Support- 1.0400 and 1.0350 Resistance- 1.0550 and 1.0640.

GOLD: For today, considering heavy volatility there are chances the metal can rally back to above the key resistance of $1840. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1786 if the metal breaks below $1800.



The important levels to watch for today: Support- 1800 and 1786 Resistance- 1835 and 1850.

Quote of the day - “The individual investor should act consistently as an investor and not as a speculator.” — Benjamin Graham.

Read more - https://gulfbrokers.com/en/daily-market-report-511

 

[syamfx2020]

The British pound slightly regains the upside momentum against the US dollar and Euro ahead of the Bank of England meeting. The market participants are expecting the central bank will increase the interest rates for the fifth consecutive time on Thursday. Meanwhile, on Wednesday the US Federal Reserve hiked its policy rate by 75 basis points, making it the biggest interest rate rise in almost 30 years.

GBPUSD key technical levels to watch for today:

Support: 1.2040 and 1.1960

Resistance: 1.2210 and 1.2320

EQUITIES

US futures struggling to hold the previous session's gains and European shares opened lower on Thursday after the Federal Reserve and European Central Bank seem poised to aggressively tighten financial conditions.

OIL

Crude oil prices fell to the fresh weekly lows on Wednesday driven weaker-than-expected US inventory report and hawkish comments from the Fed’s hawkish hike. The EIA data showed the crude inventories increased by 1.956 million barrels in the week ended June 10th, compared to market expectations for a 1.314 million drop.

CURRENCIES

In the currency market, the New Zealand dollar reversed from the previous session highs following the release of disappointing New Zealand GDP data. The data showed the GDP in the first quarter of this year contracted by 0.2% from last year’s fourth quarter.

GOLD

The precious metal rebounded back to above $1830 after the metal failed to break below the key psychological support of $1800. Moving ahead, the gold traders should closely monitor the BOE decision and US housing data.

Economic Outlook

On the data front, US retail sales in May declined for the first time in five months. The US retail sales dropped by 0.3% in May, dropping from April's revised 0.7% increase.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11.00

US – Jobless claims: GMT – 12.30

US – Building permits: GMT – 12.30

Coronavirus update:

Worldwide, more than 535 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 85.5 million cases and has had more than 1011,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.0390. In case it breaks below this level, it will head towards the next support level which is located near 1.0350. On the upside, 1.0510 will act as an immediate and strong hurdle while 1.0550 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1.0390 and 1.0350 Resistance- 1.0510 and 1.0550.

GOLD: For today, 1824 is the immediate support level, followed by 1812. If the metal breaks below 1812, the slump will quickly extend toward the 1800 mark. On the flip side, the first resistance at 1842 any break above this level will open 1850/55 minimum.



The important levels to watch for today: Support- 1824 and 1812 Resistance- 1842 and 1850.

Quote of the day - A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort - Richard Driehaus.

Read more - https://gulfbrokers.com/en/daily-market-report-512

 

[syamfx2020]

Last week was typically the most volatile week for traders across the globe. Global stocks and commodities tumbled after the major central banks including the US Federal Reserve and Swiss National Bank have turned extremely hawkish. The FED increased interest rates by 75 basis points (bps) in the last meeting on Wednesday, followed by the SNB’s largely unexpected decision to hike rates by an aggressive 50 bp.

This week inventors anxiously awaiting the FED chair Powell's Testimony. Powell will deliver his testimony on the economy to the Senate Banking Committee on Wednesday morning, and then again to the House Financial Services Committee on Thursday.

GOLD

The precious metal remained under pressure amid a strong dollar and the US FED signalled a much more aggressive path to fight 40-year-high inflation. The king dollar has firmly put gold in the danger zone and a break of the $1,800 level could lead to further technical selling.

For this week, the metal-supported at 1830 level, any break below this level will open the doors to 1814 and 1808. On the upper side, if the price break and close above 1860, the next upside levels are to watch 1872 and then 1880.

DOLLAR INDEX

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, ended slightly lower on Friday while the overall momentum remains bullish after the aggressive stance of the US central bank has triggered the fear of recession. The index reached its highest level since November 2002 to 105.80 last week.

For DXY this week, the first nearest support level is located at 103.40. If it breaks below this level, it will head towards the next support level, which is near 102.80 then 102.20. On the upper side, 105 will act as an immediate resistance, and a break above this level could open up a buying trend until 105.80/106.

EURUSD

The EURUSD rebounded back to above 1.0550 after the currency pair found strong buyers near the key support area of 1.0350. While the currency pair retreats back to below 1.0500 on Friday after the buyers failed to hold the upside momentum above 1.0600. Moving ahead, no important economic events are expected from the Eurozone this week, so the US dollar movement will continue to play a vital role in the Euro's future direction.

This week, the first resistance is located around 1.0540, a break above this level will confirm a possible move to 1.0630/80. On the downside, if the pair loses the 1.0400 handles, we expect a move toward 1.0350 and then 1.0300. In the long term, watch for weekly closing above 1.0640 or below 1.0400 area, which will give a larger confirmation of direction in the long term.

DOW JONES

The Dow Jones plunged below 30,000 last week as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control. However, we can expect some recovery by this week, the key events to watch are US home sales data and Powell's testimony.

Technically the overall momentum remains bearish. For this week, the first nearest support level is located at 29,500. If it breaks below this level, it will head towards the next support level, which is near 29,300/200. On the flip side, the first resistance at 30,250 any break above this level will open 31,000 minimum.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-35

 

[syamfx2020]

Like any other sector, the social media stocks have also remained under pressure in the last couple of months due to high inflation, rising interest rates and a growth stock correction and there are huge chances of the continuation of this downtrend. However, it’s a good strategy to buy low during a dip.

What has been driving the social media giant’s lower?

Recently, the shares of Snap and Pinterest hit their lowest level in more than a year. Snap shares dropped below the firm’s 2017 IPO price of $17 and trade near $12 now. The strong bearish momentum was fueled after the company admitted worse earnings and revenue guidance for the current quarter. The stock dropped 43% in a single day after the company adjusted this forecast. On the other hand, the Pinterest stock struggling to find the upside momentum after the strong sell-off as higher interest rates put downward pressure on growth stocks. The Pinterest stock has lost 42% this year and trades below $20 now.

SNAP and Pinterest Q1 earnings review

Snap, the parent company of Snapchat (NYSE: SNAP) released its first-quarter financial results for 2022 on April 22. The company beat estimates on user growth but missed revenue and earnings. Snap added 13 million more daily actives in Q1 2022, taking it up to 332 million and revenue grew 38% year-over-year to reach $1.06 billion for the quarter.

The product and idea discovery site Pinterest (NYSE: PINS) reported its first-quarter earnings for the year 2022 on April 27th. Pinterest's Q1 earnings results showed that they beat revenue and EPS estimates even though user growth declined. Pinterest grew revenue 18% year over year to $575 million and recorded a net loss of $5 million. Its global monthly active user base was 433 million, down 9% from the same quarter last year.

Which One Should You Invest In?

Based on the analysis both are good investments for the long term, but technically I feel Snap stock looks much cheaper than Pinterest which makes it a better bet right now. Snap is a much larger company than Pinterest with a market cap. $SNAP is down more than 80% from all-time highs and Snap is nearing some oversold technical levels.

For the short-term technical levels take a look at the below charts of $PINS and $SNAP.

Read more here - https://gulfbrokers.com/en/snap-or-pins-which-social-media-stock-is-better-buy-now

 

[syamfx2020]

The Euro bounced against the US dollar on Tuesday after the European Central bank President Christine Lagarde reiterated plans to raise the ECB’s interest rates twice this summer. The ECB Chief Economist Philip Lane also said the ECB will raise interest rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis point hike could be on the cards. As of this writing, the EURUSD trades above 1.0570.

EQUITIES

US future extended from the previous session gains while the Chinese shares ended flat on Tuesday. Meanwhile, on Monday the People’s Bank of China (PBoC) interest rate was kept unchanged at a one-year loan prime rate of 3.70% and the central bank paused its policy easing.

OIL

Crude oil prices recovered from the previous session's lows. On Monday, the oil prices plunged to the fresh monthly lows as the investors remain concerned about the aggressive monetary tightening that could lead to a global recession and demand slowdown. Moving ahead, the oil traders should closely monitor the release of API and EIA crude inventory data, which is set to be released later this week.

CURRENCIES

In the currency market, the Australian dollar slightly regains upside momentum following the release of hawkish RBA minutes. The GBPUSD rebounded back to above 1.2400 on Tuesday boosted by the weaker dollar.

GOLD

The precious metal struggling to rebound despite the weak US dollar as the gold traders are waiting for Fed Chair Jerome Powell's testimony on Wednesday and Thursday. At the time of writing, the metal trades were near $1830.

Economic Outlook

On the data front, the RBA released the June meeting minutes. The minutes showed the Central bank flagged more rate hikes over the months ahead amid current inflation pressures and the still very low level of interest rates in the country.

Meanwhile, the Reserve Bank of Australia governor Philip Lowe said in a speech that, monetary policy tightening, and interest rate hikes globally would work together to drive down inflation by creating a balance between the demand and supply of goods.

Moving ahead today, the important events to watch:

Canada – Retail Sales: GMT – 12.30

US –Existing home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 539 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 86 million cases and has had more than 1013,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: In the short-term perceptive, the immediate bias will remain bullish as long as prices are held above 1.0500. On the flip side, any break below 1.0500 then the next support near the 1.0470 followed by 1.0440 level.



The important levels to watch for today: Support- 1.0590 and 1.0640 Resistance- 1.0500 and 1.0470.

GOLD: The key resistance is located above $1845, a break above this level will confirm a possible move to $1855/58. On the downside, if the metal loses the $1828 handle, then we expect a move toward $1820/12.


The important levels to watch for today: Support- 1830 and 1828 Resistance- 1840 and 1845.

Read more -https://gulfbrokers.com/en/daily-market-report-513