Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

The second-quarter earnings season kicks off on Tuesday with better-than-expected earnings results from the beverage and snack giant PepsiCo (NASDAQ: PEP). The company's net revenue rose 5.2% to $20.23 billion in the second quarter and raised its full-year revenue forecast.

• Earnings per share: $1.86 vs. $1.74 expected
• Revenue: $20.23 billion vs. $19.51 billion expected

"We are pleased with our results for the second quarter as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets." – PepsiCo CEO, Ramon Laguarta said.

Moving ahead, major airline carrier Delta Air Lines (NYSE: DAL) is scheduled to announce Q2 results on Wednesday, July 13th, before the market open. On the other hand, the big US investment bank's earnings season for the second quarter of the financial year 2022 will also start this week as the investors anxiously waiting for the bank's last quarter financial results as the Central banks around the world are raising interest rates to control inflation.

The largest bank in the United States JPMorgan Chase (NYSE: JPM) and Morgan Stanley (NYSE: MS) coming out with its June quarter numbers on July 15th. Other banks including Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) are both scheduled to report earnings in July. 16. Bank of America Corp (NYSE: BAC) and Goldman Sachs Group Inc (NYSE: GS) plan to announce their fourth-quarter financial results on Monday, July. 18.

Check out the original article here - https://gulfbrokers.com/en/pepsico-kicks-off-q2-earnings-season

 

[syamfx2020]

Commodity prices and precious metals are extremely volatile ahead of the US inflation report, which is set to be released at 12:30 GMT. The inflation data could bring extra volatility to the global markets and the data could determine the pace of tightening in the world's largest economy. The metals and commodities plunged recently on bets the Federal Reserve will act more aggressively to bring inflation under control.

EQUITIES

Wall Street ended lower on Tuesday and global stocks opened flat on Wednesday as investors are keeping a close watch on central bank actions as they try to assess the impact of aggressive rate hikes on global growth.

On the earnings front, major airline carrier Delta Air Lines (NYSE: DAL) is scheduled to announce Q2 results on Wednesday before the market open.

OIL

Crude oil prices tumble on Tuesday driven by the strong US dollar and renewed Covid-19 restrictions in China. API inventory data showed the US crude inventories increased by 4.678 million barrels in the week ended July 8th of 2022.

CURRENCIES

In the currency market, The British pound extended the rebound on Wednesday following the release of better-than-expected UK GDP data. As of this writing, the GBPUSD trades above 1.1900. Meanwhile, the US dollar remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious.

GOLD

The safe-haven metal remained under pressure as the traders are waiting for the release of the US CPI report that might influence the Federal Reserve’s decision on whether to act more aggressively. At the time of writing, the metal hovers near the 9-month lows.

Economic Outlook

On the data front, the UK GDP data showed the UK economy growing faster than expected in May. The UK GDP increased by 0.5% in May, following a decline of 0.2% in April, which was revised up from an earlier estimate for a 0.3% fall.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12.30

Canada – BOC interest rate decision and statement: GMT - 14.00

US – EIA crude inventories: GMT – 14.30

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 0.9980 then 0.9960. On the upper side, 1.0070 is the key resistance zones to watch for today, if the pair breaks and closes above this area then the next supply level to watch is around 1.0140 and 1.0190.



The important levels to watch for today: Support- 0.9990 and 0.9960 Resistance- 1.0070 and 1.0140.

GOLD: The precious metal remains under pressure a clear breakdown of the support at $1720 could open space for further declines while only recovery to $1,744 would reverse the short-term negative trend.



The important levels to watch for today: Support- 1720 and 1712 Resistance- 1732 and 1744.

Quote of the day - “Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets.”- Michael Carr.

Read more - https://gulfbrokers.com/en/daily-market-report-526

 

[syamfx2020]

The Japanese Yen surges to a fresh 24-year high against the king dollar on Thursday driven by the strengthening US dollar performance due to the divergence of the Bank of Japan's monetary policy stance. As of this writing, the USDJPY trades above 139.00.

BOJ remains the only major central bank that has maintained ultra-easy policies at a time while other major central banks are continuously increasing interest rates to combat surging inflation. Recently Bank of Japan Governor Haruhiko Kuroda reiterated that he won’t hesitate to add monetary stimulus if needed to spur a recovery in the economy.

EQUITIES

European and UK stocks opened sharply lower on Thursday; the fall followed a pummelling session for US stocks on Wednesday. The overall sentiment is expected to be under pressure in the coming days as investors remain concerned about the rising inflation pressures.

On the earnings front, the largest bank in the United States JPMorgan Chase (NYSE: JPM) and Morgan Stanley (NYSE: MS) is scheduled to announce Q2 results on Wednesday before the market open.

OIL

Crude oil prices extended the decline on Thursday after the U.S. crude inventories rose by more than anticipated. The EIA data showed US crude oil inventories jumped by 3.254 million barrels last week, compared to the market expectation of a 0.154 million drop.

CURRENCIES

In the currency market, Euro and GBP attempted to bounce against the US dollar but failed to hold the upside momentum. The US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remains volatile as uncertainties remain high.

GOLD

The safe-haven metal remains under pressure after the strong US inflation numbers reinforced bets for aggressive Federal Reserve rate hikes. Moving ahead to the North American session, the gold traders should closely monitor the release of US PPI and jobless claims data.

Economic Outlook

On the data front, the market is now pricing in an 83% probability of a 100-bps hike at this month's US FOMC meeting after the US Inflation Rate rises to 9.1%, its highest level since November 1981. The faster-than-expected increase in the consumer price index compared to May was driven by significant increases in gasoline prices.

Moving ahead today, the important events to watch:

US – PPI: GMT – 12.30

US – Jobless claims: GMT – 12.30

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 momentum remains bearish, the immediate support for the Euro stands near the level of 0.9960. On the flip side, the first resistance at 1.0100 any break above this level will open 1.0180 minimum.



The important levels to watch for today: Support- 0.9990 and 0.9960 Resistance- 1.0070 and 1.0140.

GOLD: For today the key support remains below the previous session low of $1706. On the flip side, the immediate resistance is located above $1722, a break above this level will confirm a possible move to $1732/40.



The important levels to watch for today: Support- 1710 and 1700 Resistance- 1722 and 1740.

Quote of the day - “Make a mistake, analyze the mistake, understand the mistake, then get over it and focus on the next trade in the ongoing series of trades.” Peter Brandt.

Read more here - https://gulfbrokers.com/en/daily-market-report-527

 

[syamfx2020]

This week the world’s major central banks, the European Central bank and the Bank of Japan will announce their interest rate decisions this week.

However, all eyes will turn to the European Central Bank monetary policy decision. The most waited ECB decision tends to lead to significant moves for currencies and Indices. The ECB is set to hike interest rates for the first time in 11 years. The central bank should also unveil new forecasts for interest rates, inflation, and the economy.

On the earnings front, the companies due to release their results will be Netflix, Bank of America, Snap, Twitter and Tesla will be among those reporting earnings this week.

GOLD

The precious metal plummeted to the fresh yearly low of 1698 last week following the release of the US Consumer Price Index, which increased by 9.1 percent year on year in June, exceeding the 8.8 percent increase expected. Moving ahead to the new week, again the trend of the metal would largely depend on the trend of the dollar index and major central bank's monetary policy decisions.



For this week, the first nearest support level is located at 1696. In case it breaks below this level, it will head towards the next support level which is located near 1688 and 1680. On the upper side, 1730 will act as an immediate and strong hurdle while 1745 will be a critical resistance zone because above this, bulls are likely to dominate.

DOLLAR INDEX

The US dollar, which is also often seen as the ultimate safe-haven currency, held firm against many other rivals last week, including the euro and commodity-linked currencies as the high inflation rates continue to encourage safe-haven demand. Meanwhile, on Friday, the DXY slightly retreated from highs after the robust US retail sales data failed to impress investors. Moving ahead to this week, there are no important economic reports scheduled to be released in the U.S. this week except the US home sales data.



The index reversed from the highest levels in 20 years. While the long-term uptrend will remain in place. On the downside, 106.60 is the key support level to watch this week, followed by 106.30. Further selling pressure will intensify only if the Index break below 105.70 levels.

EURUSD

The currency pair extended the gains on Monday following the previous session‘s rebound in hopes that the ECB will likely hike interest rates on Thursday. Besides the ECB meeting, the EURO traders are also waiting for the Eurozone inflation data, which is set to be released on Tuesday.



This week, good support is expected at the 1.0000 and 0.9990 area while further down, demand is also expected around 0.9950/40, which will act as the next area of support. On the flip side, the bullish breakout of 1.0180 will likely push the currency pair into a new trading zone, which may offer further buying opportunities until 1.0275 and 1.0350.

DOW JONES

The Dow Jones ended in positive territory on Friday US retail sales climbed by a more-than-expected 1% in June. The data showed that U.S. retail sales rose 1% in June, from a revised decline of 0.1 % in May, the Commerce Department said Friday. This week, the main driver for the Dow remains the ongoing second-quarter earnings season, some of the largest US companies will report their latest quarterly numbers this week including Netflix and Tesla.



For this week, 30,800 remains the key support area to watch, any break below this level will open 30,300/100 minimum. On the flip side, the bullish breakout of 31,500 is likely to push the Dow into a new trading zone, which may offer further buying opportunities until 31,900 and 32,200.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-39

 

[syamfx2020]

Well, it looks like it has been a disappointing first half of the year for stock investors, the strong bearish momentum was caused by continuing war in eastern Europe, higher inflation and central banks that are scrambling to tighten policy to control rising prices.

With this in mind, Investors are now going to pay close attention to the earnings season. The second quarter earnings season already commenced last week with disappointing results from the largest US investment banks. Meanwhile, the beverage and snack giant PepsiCo (NASDAQ: PEP) reported impressive second-quarter results.

However, here are the 5 stocks that have good potential and are worth snatching up on the dip before their results are released. Let’s dive in.

American Airlines​

The Airline giant American Airlines (NASDAQ: AAL) is scheduled to report second-quarter financial results on July 21, 2022. The stock jumped almost 10% last week after the company said that it expects its second-quarter revenue to be better than the same quarter pre-pandemic by 12%. The stock is expected to extend the gains in the coming days and there is a good chance for a nice value pop when earnings come out.

Rivian​

The electric-vehicle automaker Rivian Automotive (NASDAQ: RIVN) is scheduled to report its second-quarter 2022 earnings on August 11. $RIVN stock had declined almost 68% this year and the stock trade now at $30 per share. While recently the stock regained bullish momentum after the company announced Q2 delivery and production figures. The company produced 4,401 electric vehicles and delivered 4,467 during the quarter ended June 30.

Boeing​

The airplane manufacturer Boeing (NYSE: BA) is expected to release its second-quarter fiscal year 2022 earnings on July 27. The stock sinks to a fresh 52-week low of $113 on June 14th. Boeing released second-quarter deliveries on July 12, the company delivered 121 jets in the second quarter, up from 95 in the first quarter of the year. As of this writing, the stock is up 4% in pre-market trading on Monday after the major airline carrier Delta Air Lines announced a firm order for 100 models of the Boeing 737 MAX-10.

Airbnb​

San Francisco-based vacation rental company Airbnb's (NASDAQ: ABNB) earnings release for the second quarter is slated for August 11. The stock dropped more than 45% in the first half of 2022; the strong bearish sentiment was fueled by an aggressive rate hike by the Federal Reserve. But the stock is already reached a crucial buy point and there is a possibility that it may regain upside momentum if the company exceeds expectations.

Snowflake​

The data warehousing firm Snowflake (NYSE: SNOW) is set to announce its second-quarter 2022 financial results on, August 24. $SNOW was struggling to find further upside momentum and traded sideways since the last earnings announcement. During the first quarter, the company generated impressive 85% revenue growth to $422.4 million. With a longer-term view, there's plenty of scope for $SNOW to grow in the coming days if the company continues to report solid revenues and healthier margins.

Read more - https://gulfbrokers.com/en/stocks-to-focus-before-q2-earnings

 

[syamfx2020]

The world’s largest streaming service Netflix (NASDAQ: NFLX) is scheduled to announce second-quarter financial results on Tuesday, July 19 after market close. Consensus forecast EPS of $2.96 on revenue of $8.05 Billion. The entertainment giant is having a terrible year and the stock down over 70% since the start of 2022. $NFLX stock plunged more than 35% in a single following the release of disappointing Netflix’s first-quarter earnings results since then the stock is struggling to find buyers.

EQUITIES

US futures reversed from the previous session highs on Tuesday after Bloomberg reported that Apple would slow hiring and spending on growth next year to prepare for a possible economic slowdown. Meanwhile, on Monday, Wall Street ended higher supported by recent comments by US Fed policymakers.

OIL

Crude oil prices bounced on Monday after US President Joe Biden's visit failed, 'oil production cannot be increased by 1.3 million barrels. Saudi Crown Prince Mohammed bin Salman has said that oil production cannot be increased by 13 million barrels. On the other hand, a Bloomberg report quoted Iraqi Oil Minister Ihsan Abdul Jabbar as saying that crude will remain above $100 a barrel for the rest of the year.

CURRENCIES

In the currency market, the EURUSD extended the gains in the hope that the European Central bank might consider a 50 bps rate hike this week. The Australian dollar recovered from the early session lows following the release of hawkish RBA meeting minutes.

GOLD

The safe-haven metal struggling to find the upside momentum. During the previous session, the metal surged to above $1720 but later retreated back to below $1710 after it failed to hold the upside momentum. As of this writing, the metal trades are above $1714.

Economic Outlook

On the data front, the Reserve Bank of Australia released the last meeting minutes today morning. The minutes showed the central bank remains committed to doing what is necessary to ensure that inflation returns to the target over time. The level of interest rates was still very low for an economy with a tight labour market and facing a period of higher inflation - the RBA minutes said.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 09.00

US – Building permits: GMT – 12.30

Coronavirus update:

Worldwide, more than 562 million people have been confirmed infected and more than 6.36 million have died. The United States has confirmed over 89.5 million cases and has had more than 1.02 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair rebounded back to above 1.0250 during the European session. For today, the first resistance is located for the pair at around 1.0280, a break above this level will confirm a possible move to 1.0350/60.



The important levels to watch for today: Support- 1.0220 and 1.0170 Resistance- 1.0280 and 1.0350.

GOLD: Today the gold price is supported at below $1700/1698, any break below $1698 will open the doors to $1690/88. On the other upper side, the immediate resistance at $1725 and $1730.



The important levels to watch for today: Support- 1700 and 1688 Resistance- 1725 and 1730.

Quote of the day - “To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game.” — Robert Kiyosaki.

Read more - https://gulfbrokers.com/en/daily-market-report-528

 

[syamfx2020]

UK inflation rises for the ninth month in a row and soars to a fresh 40-year high. The strong June inflation was driven by rising food and fuel prices. The annual inflation rate in the UK increase in June to 9.4%, up from the previous month’s 9.1%.

We expect this hotter-than-expected inflation report will force the Bank of England to act more aggressive to combat inflation. BoE governor Andrew Bailey said on Tuesday “a 50-basis-point increase will be among the choices on the table when we next meet”.

Meanwhile, on Tuesday, June’s eurozone CPI data showed inflation up at a record high of 8.6%. Moving ahead to the North American session, Canada will release the latest inflation numbers.

EQUITIES

US stock futures extended the gains on Wednesday boosted by better-than-expected US building permits data and robust earnings results. Shares of the entertainment giant Netflix gained almost 8% in extended trading on Tuesday after the company projected it will add 1 million subscribers in the third quarter.

OIL

Crude oil futures reversed from the previous session gains after the release of API inventory data. The data showed the US crude inventories rose 1.860 million barrels in the week ended June 15th. Moving ahead, the oil traders should closely monitor the release of EIA crude inventory data, which is set to be released later today.

CURRENCIES

In the currency market, the Euro holds the gains against the US dollar and British pound while the GBP struggling to extend the gains against the US dollar following the release latest UK inflation data. The Canadian dollar reached a new fresh weekly high against the US dollar supported by crude oil prices recovery, focus now shifted to Statistics Canada to release June inflation data.

GOLD

The safe-haven metal continues to trade sideways following the previous sell-off. Overall, the momentum remained bearish for this whole week on concerns over aggressive Fed tightening following higher-than-expected U.S. June CPI data. As of this writing, the metal trades below $1707.

Economic Outlook

On the data front, the US released mixed housing data on Tuesday. Building permits in the US, decreased 0.6% to an annualized rate of 1.685 million in June of 2022, the lowest level since September last year and compared to forecasts of 1.65 million.

Moving ahead today, the important events to watch:

Canada – CPI: GMT – 12.30

US – Existing home sales: GMT – 14.00

US – EIA crude inventory report: GMT – 14.30

Coronavirus update:

Worldwide, more than 562 million people have been confirmed infected and more than 6.36 million have died. The United States has confirmed over 89.5 million cases and has had more than 1.02 million 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 1.0180. On the flip side, any break below 1.0180 then the next support near the 1.0140 followed by the 1.0100 level.



The important levels to watch for today: Support- 1.0220 and 1.0170 Resistance- 1.0280 and 1.0350.

GOLD: For today, the first support appears to be around 1700/1698, any break below this level the next support is to watch 1690/85. On the flip side, if the metal breaks the 1725 handle, then we expect a move toward 1740/45.



The important levels to watch for today: Support- 1700 and 1685 Resistance- 1725 and 1735.

Quote of the day - “The majority of short-term trading results are just random. In the long term, the money ends up with those that can trade and manage risk.”

Read more - https://gulfbrokers.com/en/daily-market-report-529

 

[syamfx2020]

The price of the largest cryptocurrency Bitcoin (BTC) is down by more than 2% in the last 24 hours after the electric car manufacturer Tesla sold 75% of its bitcoin holdings in the second quarter, which added $936 million of cash to its balance sheet. The Bitcoin price fell below $22,700 after this announcement and as of this writing, the crypto pair slightly rebounded back to near $23,000.

"As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet," - Tesla said.

Tesla on Wednesday announced better-than-expected second-quarter financial results. Tesla stock jumped 1% in extended trading on Wednesday while shares are down almost 30% from the beginning of the year.

BTCUSD short-term technical outlook

Technically the current price action signals suggest that the short-term bearish trend remains intact. Now watch closely the trendline support of $22,250/00, any break above this level will open $21,500/400 minimum. On the flip side, $23,800 will act as an immediate and strong hurdle while $24,500 will be a critical resistance zone because above this, bulls are likely to dominate.

Read more here - https://gulfbrokers.com/en/btcusd-down-2-after-tesla-has-sold-75-of-its-bitcoin

 

[syamfx2020]

Today, all eyes are on the European Central bank (ECB) meeting as the central bank is expected to hike interest rates for the first time in 11 years. The ECB has not raised interest rates since 2011. The central bank will also be expected to provide clues about the timeline of upcoming interest rate hikes amid rising inflationary pressures. ECB already signalled a 25 basis-point increase in July while several market participants expect a surprise 50 basis-point hike.

The central bank is changing the publication time of its monetary policy decisions and the timing of the press conferences. The ECB Monetary Policy Statement is set to be released at 12:15 (instead of 11:45) GMT. Along with this release will see the ECB president Christine Lagarde Conference at 12:45 (instead of 12.30) GMT.

EQUITIES

US stock futures holding the gains supported by better-than-expected corporate earnings results from the EV maker Tesla and the streaming giant Netflix.

On the earnings front, Snap and American Airlines are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures slide on Thursday after the increase in gasoline inventories by 3.5 million barrels, beating forecasts of a 0.071 million build. Meanwhile, the EIA crude inventory data showed the US oil inventories declined by 0.446 million barrels in the week ended July 15th, compared to the market expectations of a 1.357 million build.

CURRENCIES

In the currency market, the Japanese Yen extended the decline against the US dollar and Euro following the release Bank of Japan monetary policy decision. The central bank maintained short-term interest rates at -0.1% on Thursday morning and raised its inflation outlook for the forecast period. The US dollar index which measures the greenback against major peers has surged back to above 107.

GOLD

The safe haven the metal collapses below the psychological level of $1800 weighed down by broad strengthening in the US dollar. Moving ahead to the North American session, the gold traders should monitor the release of US weekly jobless claims and Philly Fed manufacturing data.

Economic Outlook

On the data front, Canada’s rate of inflation continued to soar in June, hitting a four-decade high. The consumer price index rose 8.1% in June, fuelled by soaring gasoline costs. However, this rise came lower than the forecast of 8.4%.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision and statement: GMT – 12.15

US – Jobless claims: GMT – 12.30

US – Philly Fed Manufacturing Index: GMT – 12.30

Coronavirus update:

Worldwide, more than 562 million people have been confirmed infected and more than 6.36 million have died. The United States has confirmed over 89.5 million cases and has had more than 1.02 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Today good support is expected at the 1.0070 area, with this zone having held last week while further down, demand is also expected around 1.0000, 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.



The important levels to watch for today: Support- 1.0140 and 1.0070 Resistance- 1.0280 and 1.0350.

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 1680/70 if the bearish momentum continues. On the flip side, the first resistance is located around 1800, a break above this level will confirm a possible move to 1810 and 1825.



The important levels to watch for today: Support- 1680 and 1670 Resistance- 1695 and 1705.

Quote of the day - Your trading needs to boil down to rules, money management, and that is it – Michael Covel.

Read more - https://gulfbrokers.com/en/daily-market-report-530

 

[syamfx2020]

Last week, global stock markets edged higher while the king dollar pulled back after a very strong run of gains. This week the volatility is expected to be extremely high and the FOMC meeting will be the highlight of the final week of this month. The US central bank is expected to raise rates by 75 basis points for the second consecutive month. However, traders will also be watching the latest US GDP and personal income data.

On the earnings front, the big tech giants scheduled to release their last quarter financial results this week will be Amazon, Apple, Alphabet and Meta.

GOLD

The precious metal has recovered impressively from last week’s 16-month low and bounced more than $50 supported by a weakening US dollar and weak global PMI data. Meanwhile, on Friday, the metal reversed from the early gains as the traders are cautious ahead of the US Federal Reserve monetary policy decision.



Technically, the short-term trend remains supportive while If the US dollar regains further upside strength this week we could see an extension to the weakness in the precious metals. For this week, the first nearest support level is located at 1710. In case it breaks below this level, it will head towards the next support level which is located near 1700 and 1696. On the flip side, the first immediate resistance level for the metal is 1740, then the stronger resistance is 1745, which is important to be stable above it for a continuing rise to 1770 and 1782 levels.

DOLLAR INDEX

The US dollar, which is also often seen as the ultimate safe-haven currency, gave up gains and ended in negative territory last week. The recent pullback was fueled by the comments from FED policymakers. Federal Reserve policymakers pushed back against a bigger hike, both Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard said they preferred a 75-basis-point interest rate increase at the Fed's July meeting.



Technically the current price action signals suggest that the medium-term bearish trend remains intact after the bulls failed to extend the rally. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 105.70 and 105.20 if the bearish momentum continues. On the bullish side, the resistance stays above 107.40/50, and a break above this exposes the Index towards the 107.80 and 108.30 levels.

EURUSD

Last week the markets witnessed the euro recording some modest gains in relation to the US dollar supported by a larger interest rate hike from ECB. The central bank increased the main refinancing rate by 0.50% on Thursday, the market consensus was 0.25%. The currency pair also received additional buying pressure after the Russian gas flows re-started after maintenance works ended in Nord Stream 1 pipeline. In the coming week, again the trend of the euro would largely depend on the trend of the dollar index.



For EURUSD this week, the first nearest support level is located at 1.0130. In case it breaks below this level, it will head towards the next support level which is located near 1.0100 then 1.0070. On the upper side, 1.0280 will act as an immediate and key hurdle while 1.0350 will be a critical resistance zone because above this, strong upside momentum is likely to dominate.

DOW JONES

The Dow Jones futures and all other US indices hold the previous week's gains and started the new week on a positive note. On Friday, the Dow ended slightly lower driven by weaker-than-expected second-quarter earnings results from the social media giants Twitter and Snap. This week the Dow traders will likely keep a look at the earnings reports from big tech firms including Amazon, Apple, Alphabet, Meta Platforms and Microsoft.



This week as long as the index trades above 31,300 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 32,300/400, a break above this level will confirm a possible move to 32,800 and 33,000. On the downside, 31,650 is the immediate support level, followed by 31,500. Further selling pressure will intensify only if the Index break below 31,300/200 levels.

Read more- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-40