Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Global markets started the week on a relatively quiet note on Monday as US stock markets will remain closed in observance of Independence Day. The volatility is expected to pick up later this week, the main attractions going to be the FED and ECB meeting minutes and the RBA will kick off this month's central banks policy meeting on Tuesday.

On the other hand, Non-farm payrolls will be the highlight of the final trading day of the week. Markets are expecting 300k job growth in June. The unemployment rate is expected to be unchanged at 3.6%.

GOLD

The precious metal fell sharply last week weighed down by a stronger dollar and hawkish FED view. Recently FED chair Powell noted that the central bank is fully committed to bringing prices under control even if doing so risks an economic downturn. Meanwhile, the gold price started this week slightly higher and recovered from some previous week's losses. A few of the key factors the gold traders should monitor this week is the FOMC meeting minutes and the US jobs report.



For this week, $1,790 is the immediate support level, followed by $1,785. If the pair breaks below the $1,785, the slump will quickly extend toward the $1760 mark. On the upper side, gold is likely to find immediate resistance at $1,820, any break above the $1,820/22 level could lead the prices of the precious metal towards the next resistance levels of $1,830 and $1,835/40.

DOLLAR INDEX

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies remained in demand last week. Moving ahead, this week the traders await the FED meeting minutes later this week, looking for clues on future rate hikes by the central bank. The USD traders focus will also turn to the Non-farm payroll report on Friday, which should prompt even more volatility.



This week, the first resistance is located around 105.80, a break above this level will confirm a possible move to 106.20/40. On the downside, any meaningful pullback now seems to find some support near the 104.60 zones, below which the slide could further get extended towards the 104.20 and 103.80 regions.

EURUSD

The currency pair retreats back to the key support area of 1.0360 last week after the buyers failed to hold the upside momentum above 1.0500. While on Friday, the pair ended slightly higher after the Inflation in the Euro area surged to a fresh record of 8.6% in June. This week the ECB meeting minutes are arguably the biggest focus for the euro traders as European Central bank President Christine Lagarde reaffirmed plans to raise the ECB's interest rates twice this summer.



Technically the overall trend looks bearish after last week's heavy selling pressure and the medium-term support is still around 1.0350. If the currency pair breaks and closes below this level the next important support is at 1.0300. However, if the pair find some support above 1.0350 again we may see a short-term retracement to 1.0640 and then 1.0770.

DOW JONES

Dow Jones futures trade flat on Monday. At the end of last week, Dow mostly finished on a mixed note after the data showed on Friday the US manufacturing activity slowed more than expected in June. This week the Dow traders should turn their attention to the US employment report and away from concerns around the U.S. Federal Reserve tightening.



This week, the first resistance is located around 31,900, a break above this level will confirm a possible move to 32,300/400. On the downside, if the metal loses the 30,400 handles, we expect a move toward 30k. In the long term, watch for weekly closing above 33,300 or below 30,000 area, which will give a larger confirmation of direction in the long term.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-37

 

[syamfx2020]

Elon Musk’s electric vehicle manufacturer Tesla (NASDAQ: TSLA) announced its second-quarter 2022 delivery results on July 3. The automaker delivered a total of 250,000 new cars in the second quarter of the year, compared to the first quarter of 2022, the number of deliveries slumped by 18%. However, Tesla was able to produce 258,580 cars in the second quarter despite a three-week-long factory shutdown in China.

Tesla delivered roughly 238,533 Model 3 sedans and Model Y compact sport-utility vehicles combined during the second quarter. The high-end Model S sedan and Model X crossover posted combined deliveries of 16,162.

“In the second quarter, we produced over 258,000 vehicles and delivered over 254,000 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond our control. June 2022 was the highest vehicle production month in Tesla’s history” – TESLA said in the press release.

Tesla stock dropped more than 35% in the second quarter. On Friday, Tesla shares rose 1.2% to close at $681.79. Technically, the overall momentum remained bearish in the last couple of weeks. Recently Tesla laid off an estimated 200 workers and closed an entire office in San Mateo, California.

Moving ahead, the investors should closely monitor the release of financial results for the second quarter of 2022. The company will report its Q2 results after market close on 20 July 2022.

Original source - https://gulfbrokers.com/en/tesla-delivered-254k-cars-in-q2

 

[syamfx2020]

The Reserve Bank of Australia increased its benchmark interest rate from 0.5% to 1.35% on Tuesday and It is the third consecutive month in which the central bank has hiked rates. The RBA confirmed more hikes would come to curb surging inflation set to occur over the coming months.

The central bank predicts inflation will peak at the end of this year and fall back into the 2-3% range next year. RBA Governor Philip Lowe said the bank was taking the hard but necessary steps to control soaring inflation in Australia. “The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labour market,” he added.

EQUITIES

Asian shares traded higher on Monday in hopes of US president Joe Biden is reportedly planning to announce a drastic reduction in tariffs against China this week. While Chinese Vice Premier Liu has voiced concern about American tariffs on Chinese goods in an online meeting with US Treasury Secretary Janet Yellen.

OIL

Crude oil futures retreated from the early session highs weighed down by the strong US dollar. Meanwhile, the oil prices ended higher on Monday after the strike in Norway threatened to disrupt oil and gas production. The strike is expected to cut oil and gas production by 89,000 barrels per day, of which gas production will be 27,500 barrels per day.

CURRENCIES

In the currency market, EURUSD plunges to its lowest level in 2 decades of 1.0280. At the time of writing, the currency pair rebounded back to above 1.0300. On the other hand, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies surged to the highest level since November of 2002.

GOLD

The precious metal struggling to find the upside momentum. The metal trades flat on Tuesday. However, the metal is expected to regain momentum after the release of the Federal Open Market Committee (FOMC) minutes, which are set to be released on Wednesday.

Economic Outlook

On the data front, Eurozone and Germany reported mixed services PMI figures. The UK Services PMI was revised higher to 54.3 in June from a preliminary estimate of 53.4. China’s services activity in June bounced back into expansionary territory for the first time since February.

Coronavirus update:

Worldwide, more than 549 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 87.5 million cases and has had more than 1017,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically the overall trend looks bearish after the heavy selling pressure. However, if the pair find some support above 1.0250, we may see a short-term retracement to 1.0400 and 1.0500.



The important levels to watch for today: Support- 1.0280 and 1.0250 Resistance- 1.0350 and 1.0380.

GOLD: For today, $1,794 is the immediate support level, followed by $1,788. If the pair breaks below the $1,788, the slump will quickly extend toward the $1,780 mark. On the upper side, gold is likely to find immediate resistance at $1,816, any break above the $1,816 level could lead the prices of the precious metal towards the next resistance levels of $1,822 and $1,830.



The important levels to watch for today: Support- 1794 and 1785 Resistance- 1816 and 1822.

Quote of the day - “When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town

Read more - https://gulfbrokers.com/en/daily-market-report-521

 

[syamfx2020]

Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will release June’s FOMC meeting minutes later today, which investors may closely scrutinize for clues on rate hike timings in the second half of 2022. In the June meeting, FOMC raised interest rates by 75 bps, the biggest increase in three decades.

EQUITIES

US futures and European shares slightly rebounded on Wednesday morning and there have been decent moves to start the day so far with markets looking lively but all the attention remains on the minutes of the US central bank's last policy meeting.

OIL

Crude oil futures slightly recovered from the previous session's losses. On Tuesday, the oil prices plunge to fresh monthly lows as recession worries grow, raising concerns that a downturn in the economy may reduce demand for petroleum products. Citigroup said in a note that a recession could lead prices to as low as $65 this year if OPEC and other major producers do not step in to provide support and companies do not invest.

CURRENCIES

In the currency market, the US dollar index hovering close to the two decades high as investors continued to favour the greenback amid global growth concerns, while the euro kept declining driven by recession fears loom in Europe. The Australian and New Zealand dollar also posted modest gains, but trading ranges remain relatively narrow for both pairs as they stick around near unchanged levels since the trading session in Asia.

GOLD

The precious metal is trading near the lowest level since mid-December of 2021, as a firmer dollar and Amid prospects of aggressive monetary policy tightening dented the safe-haven appeal of the precious metal.

Economic Outlook

On the data front, factory orders in Germany increased by 0.1% in May, beating market forecasts of a 0.6% drop. On Tuesday, the Commerce Department released the latest US factory order data. The data showed the factory orders rose 1.6% in May after advancing 0.7% in April.

Moving ahead today, the important events to watch:

US – ISM services PMI: GMT – 14.00

US –JOLT’S job openings: GMT – 14.00

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 549 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 87.5 million cases and has had more than 1017,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the first support for the pair appears to be around 1.0230, in the short-term any break below 1.0230 the next downside level is to watch 1.0200. On the other upper side, the immediate resistance is around 1.0300 any break and close above this level will open at 1.0350.



The important levels to watch for today: Support- 1.0230 and 1.0200 Resistance- 1.0300 and 1.0350.

GOLD: For today, the immediate support for the gold stands near the level of 1760. On the flip side, the first resistance at 1772 any break above this level will open 1780/84 minimum.



The important levels to watch for today: Support- 1760 and 1755 Resistance- 1772 and 1784.

Quote of the day - Only buy something that you would be perfectly happy to hold if the market shut down for 10 years – Warren Buffet.

Read the detailed report here - https://gulfbrokers.com/en/daily-market-report-522

 

[syamfx2020]

The tech giant Amazon (NASDAQ: AMZN) has agreed to take a 2% stake in Just Eat Takeaway.com’s struggling U.S. meal delivery business Grubhub. Amazon could bump up its total stake to 15% of Grubhub based on performance terms focused on adding new customers.

Grubhub is owned by Just Eat Takeaway, Europe's largest meal delivery company. Just Eat Takeaway bought Grubhub in 2020 for $7.3 billion. Just-Eat-Takeaway.com shares rose nearly 20 percent to €16.45 in early trading on Wednesday.

Just Eat said the Amazon deal would “expand membership to Grubhub+ while having a neutral impact on Grubhub’s 2022 earnings and cash flow and be earnings and cash flow accretive for Grubhub from 2023 onwards”.

Under the deal, Amazon said Prime members can now get a free one-year Grubhub+ membership. The deal will also let Prime subscribers in the US redeem a year of Grubhub Plus, which offers free food delivery on orders over $12 from participating restaurants normally costing $9.99 per month.

“I’m extremely excited to announce this collaboration with Amazon that may assist Grubhub to proceed to ship on our long-standing mission to attach extra diners with native eating places, we are confident that this offer will expose many new diners to the value of Grubhub+ while generating more business for our restaurant partners and drivers," said Adam DeWitt, CEO of Grubhub.

Check out the original source here - https://gulfbrokers.com/en/amazon-acquires-2-stake-in-grubhub

 

[syamfx2020]

Video games retailer GameStop (NYSE: GME) stock spikes almost 9% in pre-market trading on Thursday after the company announced a four-for-one stock split, with the decision effective from July 22nd. the stock surged as high as $127.80 in pre-market trading.

GameStop plans to pay out the additional shares in the form of a stock dividend. Shareholders of the Company who register by the end of July 18, 2022, will receive a dividend in the form of three additional Class A common shares of the Company for each Class A common share held at that time. The stock dividend will be distributed after the close of trading on July 21, 2022.

EQUITIES

Wall Street ended slightly higher on Wednesday supported by stronger-than-expected US macro-economic data, both the June ISM Services PMI and the JOLTS report topped forecasts. The ISM Services PMI edged lower to 55.3 in June of 2022 from 55.9 in May but came above the market forecast of 54.3.

OIL

Crude oil prices extended the decline on Wednesday amid concerns over slower economic growth. Meanwhile, the latest API data showed the US crude inventories increased by 3.825 million barrels in the week ended July 1st of 2022, compared with market forecasts of a 1.100-million-barrel draw

CURRENCIES

In the currency market, the euro notched up small gains against a dollar after the previous 2 sessions' sell-off while overall momentum remains bearish, focus shifted to the European Central Bank meeting minutes which is set to release later today. On Wednesday, the currency pair plunged to a fresh two-decade low of 1.0160.

GOLD

The precious metal is struggling to regain upside momentum following the release of hawkish FOMC meeting minutes. Moving ahead to the North American session, the gold traders should closely monitor the release of the US ADP employment report.

Economic Outlook

On the data front, the Federal Reserve released the last meeting minutes on Wednesday. The minutes showed the central bank’s officials reiterated a tough stance against inflation, saying another 50- or 75-basis-point move would “likely be appropriate” at the July 26-27 meeting.

Moving ahead today, the important events to watch:

Eurozone – ECB meeting minutes: GMT – 11.30

US – ADP employment report: GMT – 12.15

US – Jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 549 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 87.5 million cases and has had more than 1017,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: On the downside, if the bearish momentum continues the next key demand area is to watch at 1.0160 and 1.0100. On the upside, 1.0280 will act as an immediate and strong hurdle while 1.0350 will be a critical resistance zone.



The important levels to watch for today: Support- 1.0160 and 1.0130 Resistance- 1.0280 and 1.0350.

GOLD: The precious metal slightly recovered. Now the resistance is 1750 & recent high 1747 trade or holds above resistance level then 1748 & 1760 easily looking but if not sustain then again come down up to support level 1730 & 1724.



The important levels to watch for today: Support- 1737 and 1730 Resistance- 1750 and 1760.

Quote of the day - Successful trading is about finding the rules that work and then sticking to those rules.

Read more here - https://gulfbrokers.com/en/daily-market-report-523

 

[syamfx2020]

Today the Non-farm payrolls will be the highlight of the final trading day of the week. It’s going to be a volatile journey today especially the New York session. The expectations are for 300k jobs to have been added to the US economy in June and the unemployment rate is expected to be unchanged at 3.6%.

On the other hand, the ADP National Employment Report for June, scheduled to be released on Thursday, has been suspended while the company revamps the methodology for the data.

EQUITIES

Asian share markets edged up on Friday with Australian equities the star performer supported by a recent rebound in crude oil prices. Meanwhile, US futures were in a cautious mood on Friday ahead of US employment report.

OIL

Crude oil prices rebounded on Thursday on the prospects of increased China stimulus. While the US crude oil inventories climbed by 8.235 million barrels in the week that ended July 1st, data from the Energy Information Administration (EIA) showed on Wednesday.

CURRENCIES

In the currency market, the Japanese yen extended its gains against the Euro after former Japanese prime minister Shinzo Abe shot at a campaign event. Shinzo was Prime Minister of Japan, from December 2012 to September 2020. As of this writing, the EURJPY trades below 137.70.

GOLD

Today is going to be a pivotal one for Gold and other precious metals as the traders are anxiously waiting for the release of US jobs data. However, the metal is expected to remain under pressure in the near term as investors price in the adoption of a more hawkish stance from the Fed.

Economic Outlook

On the data front, U.S. weekly jobless claims increased slightly last week. Initial jobless claims rose to a seasonally adjusted 235,000 final week from 231,000 the week earlier than, the Labor Department stated Thursday.

Moving ahead today, the important events to watch:

Eurozone – ECB president Lagarde speech: GMT – 11.55

US – Non-Farm payrolls: GMT – 12.30

Canada – Employment Report: GMT – 12.30

Coronavirus update:

Worldwide, more than 549 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 87.5 million cases and has had more than 1017,200 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically If the bearish momentum continues then the next downside level is to watch at 1.0070 and 1.0030. On the flip side, the immediate resistance is seen at 1.0150 any break above this level will open a minimum of 1.0200/30.



The important levels to watch for today: Support- 1.0070 and 1.0030 Resistance- 1.0150 and 1.0250.

GOLD: Technically the overall trend still looks bearish and the next immediate support is at 1730 then 1715. However, if the metal finds some support above 1730, we may see a short-term retracement to 1760 and 1772.



The important levels to watch for today: Support- 1730 and 1718 Resistance- 1760 and 1772.

Quote of the day - Trading gives you an incredibly intense feeling of what life is all about -Paul Jones.

Read more - https://gulfbrokers.com/en/daily-market-report-524

 

[syamfx2020]

The volatility to remain high this week as well, based on a list of important data and events. This week all eyes will be turning to the release of the key inflation reading in the US, which should signal whether the Federal Reserve continues to aggressively hike interest rates. The consensus estimate for this week's inflation report is 8.8%, which would be another 40-year high. On the other hand, the main event on the calendar for monetary policy is the meeting of the Reserve Bank of New Zealand and Bank of Canada on Wednesday.

GOLD

Gold price and other precious metals started the new week on a lower note on Monday. On Friday, the metal slightly rebounded from the weekly lows after the USD gives back some of the gains. This week the main drivers for the precious metal remain the movement of the US dollar and US inflation data.



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 1720/12 if the bearish momentum continues. On the flip side, the first resistance is located around 1760, a break above this level will confirm a possible move to 1772 and 1780.

DOLLAR INDEX

The US dollar index which measures the greenback against major peers has surged more than 10% this year to a two-decade high. During the last week, the index rises to a new 20-year high due to high energy prices and rising interest rates by the federal reserve. Moving ahead, the investors now await the release of the US CPI report later this week for more clues on the size of the Fed's rate hike this month.



The technical scenario is absolutely bullish after the last two weeks' bullish sentiment. While considering the recently bullish momentum the Dow may find strong resistance again above 107.90. On the downside, any meaningful pullback now seems to find some support near the 106.30 zones, below which the slide could further get extended towards the 105.70/50 regions.

EURUSD

EURUSD traded with a strong bearish tone for the entire last week, with some upside momentum seen only on Friday after the King dollar slightly retreated from the highs. Moving ahead to this week, there are no important economic reports scheduled to be released in the Eurozone this week except the economic sentiment data from Germany and Eurozone which is set to be released on Tuesday.



This week, good support is expected at the 1.0070 area, with this zone having held last week while further down, demand is also expected around 1.0050/40, which will act as the next area of support. On the flip side, the first immediate resistance level for the pair is 1.0220, then the stronger resistance is 1.0280, which is important to be stable above it for a continuing rise to 1.0350/80 levels.

DOW JONES

The Dow Jones ended in positive territory on Friday following the release of a better-than-expected US employment report. The NFP data showed that 372,000 jobs were added last month, versus estimates of 250,000. This week, the Dow traders will now turn their attention to the Q2 earnings results.



Dow currently hovers near the short-term trendline resistance. In case the pair manages to settle above the trendline, it will gain upside momentum and head towards the next resistance level at 32,000 and 32,500. On the downside, in the short-term the first immediate support at 30,800 followed by 30,300.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-38

 

[syamfx2020]

Shares of the social media giant Twitter (NYSE: TWTR) fell more than 6% to $34.40 in pre-market trading on Monday after the owner of Tesla (NASDAQ: TSLA) Elon Musk announced that he would abandon his tumultuous $44 billion offer to buy Twitter. $TWTR if the bearish momentum continues then the strong downside level to watch is $30.

Twitter stock closed 5% lower last Friday after Musk’s lawyer informed Twitter’s board of directors that he wanted to cancel the transaction while Musk’s electric vehicle manufacturer Tesla shares surged 2.54% to $ 752.29.

The world's richest person, Elon Musk decided to suspend the deal due to multiple breaches of the purchase agreement, saying that Twitter did not provide information about fake accounts on the platform. Musk argues that he believes that the number of these fake accounts is above 5%, but the company says it is much less. Meanwhile, there have been indications that Elon Musk will continue to buy Twitter if the price is lowered.

Twitter chairman Bret Taylor tweeted the company will take this to the courts to get Musk to close the deal. "The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr Musk and plans to pursue legal action to enforce the merger agreement” - Bret Taylor said. Meanwhile, Musk responded on Monday by posting a meme with the caption, “they said I couldn’t buy Twitter. “They won’t disclose bot info.”

Read more - https://gulfbrokers.com/en/twitter-...ter-elon-musk-decided-to-suspend-the-44b-deal

 

[syamfx2020]

The king dollar has reached parity with the euro for the first time in 20 years. The euro has continued to move downward strongly over the last two weeks driven by the energy crisis in Europe and growing recession risk in the eurozone. The pair has been moving lower since June 2021, largely due to a broad strengthening in the US dollar. At the time of writing, the EURUSD trades 1.0014.

EQUITIES

US futures trades flat on Tuesday while the Asian shares ended lower as investors remained anxious over inflation and China faces a resurgence of coronavirus outbreaks. Chinese authorities in several regions have imposed a range of restrictions to control the fast-spreading Omicron variant.

OIL

Crude oil prices struggling to find the upside momentum due to the strong US dollar and the world’s largest oil importer China’s Covid-19 outbreak threatens demand. Moving ahead, the oil traders should closely monitor the release of the OPEC monthly report, which is set to be released later today.

CURRENCIES

In the currency market, the US dollar index which measures the greenback against major peers hit its highest level in 20 years of 108.50 on Tuesday morning supported by the fears of slowing global economic growth drove investors into the safe-haven dollar. The king dollar also received additional buying pressure by bets the Federal Reserve will deliver a series of big interest rate hikes to tame inflation.

GOLD

The safe-haven metal hits its lowest levels in nine months on Tuesday as investors remain cautious ahead of the release of US inflation data. At the time of writing, the metal slightly recovered from the early session losses and trades now above $1735.

Economic Outlook

On the data front, the Germany and Eurozone reported worse than expected economic sentiment figures. German economic sentiment tumbled to -53.8 in July of 2022 from -28 in June, the lowest since December 2011. Meanwhile, the Eurozone economic sentiment fell to -51.1, compared to the market expectation of -32.8.

Coronavirus update:

Worldwide, more than 555 million people have been confirmed infected and more than 6.35 million have died. The United States has confirmed over 88.5 million cases and has had more than 1020,600 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically the overall trend still looks bearish, and the next immediate support is at 0.9990 then 0.9950. On the upper side, in case the pair manages to settle above 1.0070, it will gain upside momentum and head towards the next resistance level at 1.0120 and 1.0180.



The important levels to watch for today: Support- 0.9990 and 0.9950 Resistance- 1.0070 and 1.0120.

GOLD: Technically the current price action signals suggest that a medium-term bearish trend remains intact. However, in case the metal manages to settle above $1760, it will gain upside momentum and head towards the next resistance level at $1772 and $1780.



The important levels to watch for today: Support- 1730 and 1718 Resistance- 1750 and 1755.

Quote of the day - Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” - George Soros.

Read more - https://gulfbrokers.com/en/daily-market-report-525