Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Shares of the leading electric vehicle charging network in North America and Europe ChargePoint (NYSE: CHPT) advanced more than 12% on Wednesday. This EV charging company released its second quarter financial results on Tuesday.

ChargePoint second-quarter revenue increased the top-end of its prior guidance, increasing by 93% to $108.3 million In Q2 compared to the same quarter last year. Meanwhile, the company’s quarterly earnings loss of 28 cents per share was a lower-than-expected forecast of -25 cents. For the third quarter, the company now expects its revenue to be between US$ 125 million and US$ 135 million.

"ChargePoint delivered another strong quarter, with continued growth across all verticals and geographies…We continue to execute on our strategy, as demand continues to grow for our portfolio of industry-leading charging solutions for every vertical and in both North America and Europe." – ChargePoint CEO, Pasquale Romano said.

EQUITIES

Asian shares and US futures were mostly lower on Thursday, as investors and traders stay cautious about the hawkish comments from U.S. Federal Reserve officials. European shares extended the losses on Thursday as Investors are worried the ECB's aggressive rate hikes may lead to a recession

OIL

Crude oil futures remain under pressure for the third consecutive day as the weak sentiment data in China fueled concerns of a global economic slowdown. On the other hand, EIA reported better crude inventory data on Wednesday. The data showed that US crude inventories decreased by more than 3 million barrels last week.

CURRENCIES

In the currency market, EURUSD slightly reversed from the early gains after the release of weaker-than-expected manufacturing PMI data from the Eurozone and Germany. Manufacturing PMI in Germany decreased to 49.1 points in August from 49.3 points in July of 2022 while the Eurozone Manufacturing PMI slipped to a 26-month low of 49.6 in August.

GOLD

The precious metal slid to the fresh session low of $1700 on Thursday driven by the comments from FED policymakers. Moving ahead, Investors should closely monitor Friday's jobs report for more confirmation of labor market strength and insight into the possible path of monetary policy by the U.S. central bank.

Economic Outlook

On the data front, the ADP employment report showed the private payroll job growth slowed markedly in August. The US added 132,000 private-sector jobs in August, down from the 268,000 added in July.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12.30

US – ISM manufacturing PMI: GMT – 14.00

Coronavirus update:

Worldwide, more than 601 million people have been confirmed infected and more than 6.48 million have died. The United States has confirmed over 94 million cases and has had more than 1.05 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the key resistance is located above the last week's high around 1.0090, a break above this level will confirm a possible move to 1.0120/30. On the downside, any meaningful pullback now seems to find some support near the 0.9980/70 zones.



The important levels to watch for today: Support- 1.0000 and 0.9970 Resistance- 1.0050 and 1.0090.

GOLD: Technically the overall momentum remains bearish. If the bearish momentum continues the next key support area to watch is 1690 then 1680. On the upper side, If the metal regains upside momentum and press back above 1730 then the key resistance area to watch is 1745/50.



The important levels to watch for today: Support- 1695 and 1688 Resistance- 1714 and 1720.

Quote of the day - “The vast majority of people compete in a time horizon that’s very near dated. There are many fewer investors who are thinking out a decade and beyond.” Matthew McLennon.

Read more - https://gulfbrokers.com/en/daily-market-report-549

 

[syamfx2020]

Global stocks lagged and the dollar advanced in volatile markets on Monday as the investors widely expected the Fed to raise the interest rate aggressively in September, despite the mixed employment data. The US employment report showed the economy generated 315,000 nonfarm payrolls (NFP) in August, versus the 300,000 expected while the unemployment in the US rose to 3.7% in August.

This week’s main events in monetary policy are the meetings of the Reserve Bank of Australia, Bank of Canada and the European Central Bank. However, eyes are mainly on the European central bank this week as the central bank is expected to raise interest rates by 0.75% this week due to the rise in eurozone inflation to a record 9.1%.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be GameStop, Nio and American Eagle.

GOLD

The precious metal ended lower last week as the August jobs report further bolstered the Fed's outlook to continue raising rates. The major central bank's monetary policy decisions are the key release this week for gold. However, traders will also be watching the latest US ISM services PMI data which is set to be released on Tuesday.



For this week, the metal-supported at 1695 level, any break below this level will open the doors to 1680. On the bullish side, the resistance stays above $1730, and a break above this exposes the metal towards the $1745/50 level.

DOLLAR INDEX

The dollar index, which tracks the greenback versus a basket of six currencies started the new week on a high note. The safe-haven US dollar has displayed a lot of volatility last week after the US Labour data showed that the economy remains resilient, paving way for aggressive rate hikes by Fed. Moving ahead to this week, USD traders should closely watch Fed Chair Jerome Powell's speech on Thursday for more insight into the outlook for interest rates from the U.S.



The technical scenario is absolutely bullish. While considering the recently bullish momentum the index may find strong resistance again above 110.30. On the downside, rejection and pullback from the 110.30 resistance allow for a dip towards 109.20, with 108.90 and 108.40 forming additional downside targets.

EURUSD

EURUSD plunged to its lowest level since 2002 on Monday following the release of disappointing services PMI data from the Eurozone and Germany. This week, the Euro traders and investors are waiting for the European Central bank meeting on Thursday. The market participants anticipate the central bank to continue with aggressive interest rate hikes at Thursday’s meeting, but the investors are looking forward to ECB president Christian Lagarde's press conference.



Technically the overall momentum remains bearish. For this week, the first key support level is located at 0.9870. In case it breaks below this level, it will head towards the next support level which is located at near 0.9850 then 0.9800. On the flip side, the first resistance at 1.0000 any break above this level will open at 1.00050/90 minimum.

DOW JONES

Dow Jones futures are struggling to regain upside momentum after strong U.S. labor data raised the possibility of a sharper interest rate hike by the U.S. Federal Reserve. However, US stock and bond markets will be closed on Monday in observance of the Labor day holiday. The main attraction for DOW this week is the speeches from the various Federal Reserve policymakers and FED chair Powell.



This week, the Dow needs to stay above 30,950 to have a chance to develop upside momentum in the near term. On the downside, if the index break below the previous week's low of 30,950 the next immediate downside area is to watch 30,500/400.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-46

 

[syamfx2020]

Crude oil futures back to near the previous week's lows on Tuesday morning after OPEC’s small oil output cut failed to impress investors resulting in a sharp decline in the crude oil price. The Organisation of Petroleum Exporting Countries and allies led by Russia, known as OPEC+, decided to cut output targets by 100,000 barrels per day. Russian deputy prime minister Alexander Novak revealed that expectations of slower global economic growth are the reason behind cutting output.

EQUITIES

Global stocks and US futures remain under pressure. 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.

OIL

Crude oil futures trade near the session lows. Moving ahead, this week the Oil investors and traders should continue to monitor the progress around efforts in reviving the 2015 nuclear accord and Wednesday’s oil inventory report.

CURRENCIES

In the currency market, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies slightly retreat from the fresh 20-year highs. The Australian dollar dropped to a fresh weekly low against the greenback after the release of the RBA decision.

GOLD

The precious metal struggling to find the upside momentum. The metal retreats from the early session highs and trades now near $1710. However, the metal is expected to regain momentum after the release of the US ISM services PMI data, which is set to be released later today.

Economic Outlook

On the data front, the Reserve Bank of Australia (RBA) has announced the fifth consecutive interest rate increase. The central bank raised its interest rate by 50 basis points to 2.35%, the highest level since December 2014.

Moving ahead today, the important events to watch:

US – Services PMI: GMT – 13.45

US – ISM services PMI: GMT – 14.00

Coronavirus update:

Worldwide, more than 604 million people have been confirmed infected and more than 6.49 million have died. The United States has confirmed over 94.7 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The technical scenario is absolutely bearish after the pair breaks below 0.9900. While considering the recent bearish momentum the Euro may find strong support again below 0.9900. On the upper side, in the short-term the first immediate resistance at 1.0000 followed by 1.0050/90.



The important levels to watch for today: Support- 0.9930 and 0.9900 Resistance- 1.0000 and 1.0020.

GOLD: Technically the overall momentum remains mixed. On the downside, 1695 is the crucial support area to watch. If the pair breaks below 1695, the slump will quickly extend toward the 1680 mark. On the upper side, if the metal break above 1730 it would open doors towards the next resistance area of 1745 and above that 1760 is next.



The important levels to watch for today: Support- 1705 and 1700 Resistance- 1722 and 1730.

Quote of the day - “Always trust your intuition, which resembles a hidden supercomputer in the mind. It can help you do the right thing at the right time if you give it a chance.” - Michael Steinhardt.

Read more - https://gulfbrokers.com/en/daily-market-report-550

 

[syamfx2020]

Shares of the iPhone maker Apple (NASDAQ: AAPL) have been falling for the last 2 consecutive weeks after the stock failed to break above the upper trendline. On Tuesday, the stock closed at $154.53.

Moving ahead, the Apple investors and traders are eagerly waiting for Apple’s media event on Wednesday, September 7th at 18.00 UK time. The tech giant is expected to unveil four new models of the ‌iPhone 14‌, new Apple Watch models and a new generation of Air pods pro.

Technically In the short-term perceptive, the key support for the stock is below $150, in case the stock breaks this area, below which the slide could further get extended towards $145/138. On the flip side, if the stock regains bullish sentiment, then the first key resistance level for the stock is $157, then the stronger resistance is 160.50, which is important to be stable above it for a continuing rise to $166 and $170 levels.

EQUITIES

US Stock Index futures plunged to a fresh monthly low on Tuesday following the release of the most awaited US ISM services PMI report. Moving ahead to the North American session, the investors should closely monitor the ongoing second-quarter earnings season, some of the largest US companies will report their latest quarterly numbers today including GameStop, Nio and American Eagle.

OIL

Crude oil futures recovered from the previous session's losses. However, the overall momentum remains mixed due to escalating fears the US may be heading for a recession as central banks hike rates aggressively to combat inflation.

CURRENCIES

In the currency market, the dollar index, which tracks the currency against key rivals hovers near the fresh 20-year high on Wednesday. The strong bullish sentiment was boosted by upbeat US ISM services PMI data. The data showed ISM Services PMI unexpectedly edged higher to 56.9 in August from 56.7 in July, compared to the market forecasts of 55.1.

GOLD

Gold price fell back to below $1700 on Wednesday weighed down by a stronger dollar and a hawkish FED view. Moving ahead, again the trend of the metal would largely depend on the trend of the dollar index and FED chair Powell's speech.

Economic Outlook

On the data front, Australia’s gross domestic product (GDP rose by 0.9% in the second quarter, in line with forecasts and up on the first quarter's 0.7% rise, while annual growth accelerated to 3.6%, beating the expected forecast of 3.5 per cent.

Moving ahead today, the important events to watch:

US – Trade Balance: GMT – 12.30

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

Coronavirus update:

Worldwide, more than 604 million people have been confirmed infected and more than 6.49 million have died. The United States has confirmed over 94.7 million cases and has had more than 1.05 million 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 0.9880. In case it breaks below this level, it will head towards the next support level which is located near 0.9860/50. On the upper side, 0.9980 will act as an immediate and strong hurdle while 1.0000 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 0.9880 and 0.9860 Resistance- 0.9950 and 0.9980.

GOLD: Technically the current price action signals suggest that the bearish trend remains intact. However, as of this writing, the gold price rebounded back to above $1700. The metal can rise if it rebounds back to above the $1730 level again, any break and closes above this level the next upside levels to watch are $1745/50. Nevertheless, if it continues the bearish momentum, the slump will quickly extend toward the $1688 and $1680/78 marks.



The important levels to watch for today: Support- 1695 and 1688 Resistance- 1710 and 1722.

Quote of the day - "When I get together with other traders and they start exchanging war stories about different trades, I have nothing to say. To me, all our trades are the same." ― Larry Hite.

Read more - https://gulfbrokers.com/en/daily-market-report-551

 

[syamfx2020]

Finally, the most awaited September European central bank monetary policy decision is due to release today. The meeting outcome could bring extra volatility to the global markets. The ECB Monetary Policy Statement is set to be released at 12:15 GMT. Along with this release will see the ECB president Christine Lagarde Conference 45-minutes after at 12:45.

The ECB is expected to hike its benchmark interest rate by 50 basis points for the second consecutive time. However, the market participants also raised the probability of a 0.75% interest rate increase in the September meeting after the release of the latest Eurozone inflation data. The Eurozone’s inflation rate reached a record high in August of 9.1%.

EQUITIES

US stock futures slightly rebounded while volatility remains high as the markets are unsettled by swings in volatility caused by the latest US employment report and hawkish comments from FED policymakers. Interest rates will need to rise further and remain there for some time to provide confidence that inflation is moving down towards the central bank’s 2% target, Fed Vice Chair Lael Brainard said on Wednesday.

OIL

Crude oil futures extended the losses following the release of API inventory data. The API inventory data showed the US crude inventories increased by 3.645 million barrels in the week ended September 2nd, following a 0.593 million barrels slump in the previous week. The strong bearish sentiment was also hurt by continued demand worries amid lockdowns in China.

CURRENCIES

In the currency market, the kind dollar struggling to find strong upside momentum ahead of the US Federal Reserve Chair Jerome Powell's speech. During the last month, Powell delivered a stern commitment to combat inflation with higher interest rates in a policy speech at the Jackson Hole conference.

GOLD

Gold price recovered back to above $1720 on Thursday morning. Considering the recent rebound the gold investors should closely monitor the comments from the FED chair Powell later in the day. As of the writing, the precious metal retreats back to near $1715.

Economic Outlook

On the data front, the Bank of Canada increased the policy interest rate by 75 basis points to 3.25 per cent, the highest since the global financial crisis. The central bank said the policy rate “will need to rise further” and that officials “will be assessing how much higher interest rates need to go” in order to bring inflation back down to 2%.

Moving ahead today, the important events to watch:

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

US – Jobless claims: GMT – 12.30

Eurozone – ECB press conference: GMT – 12.45

Coronavirus update:

Worldwide, more than 604 million people have been confirmed infected and more than 6.49 million have died. The United States has confirmed over 94.7 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the key resistance is located around 1.0090, a break above this level will confirm a possible move to 1.0130/50. On the downside, any meaningful pullback now seems to find some support near the 0.9900 zones, below which the slide could further get extended towards the 0.9860/50 region.



The important levels to watch for today: Support- 0.9930 and 0.9860 Resistance- 1.0050 and 1.0090.

GOLD: Gold price trades steady above $1715. If the bullish momentum continues the next upside levels to watch are $1725 and $1730. On the downside, any meaningful pullback now seems to find some support near the $1710 zones, below which the slide could further get extended towards the $1705/00 region.



The important levels to watch for today: Support- 1710 and 1700 Resistance- 1725 and 1730.

Quote of the day - “Use limit orders exclusively-except when placing stops. Be careful what you use: there is no magic solution. Success cannot be bought; it can only be worked on.” Alexander Elder.

Read more - https://gulfbrokers.com/en/daily-market-report-552

 

[syamfx2020]

The GBPUSD rebounded back to above 1.16 on Friday as the US Dollar consolidated against its rivals after climbing to a fresh multi-decade high early this week. However, the investors should closely monitor the release of the latest UK inflation report and Bank England rate decision for the future direction of this currency pair, both events are scheduled for next week. On the technical front, we see that the pair is recovered more than 200 pips after touching the lowest level since 1985 and bullish candle formation on the weekly scale shows that the trend had gone from down to neutral.

EQUITIES

Wall Street ended slightly higher on Thursday after Fed Chair Jerome Powell showed the central bank’s commitment to fighting inflation. On the other hand, Investors also reviewing the last round of Q2 earnings to get more details on how inflation is impacting business and consumer activity. Meanwhile, Chinese shares rallied after China's consumer prices rose at a slower-than-expected pace in August.

OIL

Oil prices plunged to fresh monthly lows as investors remain concerned about the aggressive monetary tightening that could lead to a global recession and demand slowdown. While the crude oil futures slightly rebounded after Chinese authorities announced additional measures on Thursday to bolster investments and help the economy recover from damaging Covid lockdowns.

CURRENCIES

In the currency market, the Euro recovered back to above 1.0100 against the US dollar on Friday boosted by the hawkish comments from ECB's Lagarde. While USDJPY remains extra volatile, the currency pair retreated from the fresh 24-year highs.

GOLD

Gold price extended the gains on Friday Morning as the King dollar paused for breath after a record-setting rally. Moving ahead, the traders should wait for next week's US inflation data to get a clear picture of the metal's long-term direction.

Economic Outlook

On the data front, the European Central Bank (ECB) raised rates by the expected 75 bps yesterday and is committed to continuing tightening at future meetings. The central bank revised upwards its inflation forecast for 2023, from 3.5% to 5.5%.

Coronavirus update:

Worldwide, more than 604 million people have been confirmed infected and more than 6.49 million have died. The United States has confirmed over 94.7 million cases and has had more than 1.05 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 1.0000. On the flip side, any break below 1.0000 then the next support near the 0.9960 followed by 0.9930 level.



The important levels to watch for today: Support- 1.0050 and 1.0000 Resistance- 1.0100 and 1.0130.

GOLD: For today, the immediate support for the gold stands near the level of 1718. On the flip side, the first resistance at 1730 any break above this level will open 1740/45 minimum.



The important levels to watch for today: Support- 1718 and 1710 Resistance- 1730 and 1735.

Quote of the day - "To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”

Read more - https://gulfbrokers.com/en/daily-market-report-553

 

[syamfx2020]

Last week, global stocks posted gains while the US dollar slides as the recent rally takes a pause as optimism grows for inflation to continue to come down. This week, markets will now turn their attention to the U.S. inflation data that might influence the Federal Reserve’s decision on whether to act more aggressively. Economists predict an annual increase of 8.1 percent compared to the 8.5 percent rise recorded in July. On the other hand, China’s latest CPI data showed that inflation slowed in August, inflation declined to 2.5% on the year from 2.7% in July.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Oracle and Adobe.

GOLD

The precious metal ended flat on Friday. The metal regained strong upside momentum on Wednesday but it failed to extend the rally on Thursday after the comments from US Fed chair Jerome Powel. Powell said at a conference Thursday he’s “strongly committed” to bringing down inflation, fueling speculation that the Fed will announce another rate hike in September. This week the main drivers for the precious metal remain the movement of the US dollar and US CPI data.



From a technical perspective, gold is maintaining a negative bias according to the weekly chart. This week, If the bearish momentum continues then the next key support area to watch is $1692 then $1680. On the upper side, If the metal regains upside momentum and presses back above $1730 then the key resistance area to watch is $1745 and $1760.

DOLLAR INDEX

The dollar index, which tracks the U.S. currency against six major peers retreated from the multi-year highs and posted its first weekly decline in four weeks. Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Tuesday's US Inflation data.



For this week, considering heavy volatility there are chances the USD can rally back to near the 110 again. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 107.60/40 if the index breaks below 108.30. This week's expected trading range for the index is between 107.40 support and 110 resistance.

EURUSD

EURUSD found buyers again near 0.9900 and climbs to three-week highs supported by the hawkish comments from the European central bank president Christine Lagarde. Meanwhile, the European Central Bank raised rates by a record 75 basis points on Thursday signalling further hikes to fight inflation. One of the key factors the Euro traders should monitor this week is the latest consumer inflation figures from Germany and the Eurozone.



This week, 1.0000 is the immediate support level, followed by 0.9980. If the pair breaks below 0.9980, the slump will quickly extend toward the 0.9930 mark. On the upper side, the euro is likely to find immediate resistance at 1.0130, any break above the 1.0130 level could lead the pair towards the next resistance levels of 1.0200 and 1.0230.

DOW JONES

Dow Jones and other US indices rebounded last week after Fed Chair Jerome Powell reconfirmed that the central bank's priority is to tackle soaring price pressures. However, the US stock futures started the new week on a mixed note as investors across the globe remain concerned about the impact of aggressive monetary policy tightening on economic growth.



This week, the Dow needs to stay above 31,600 to have a chance to develop upside momentum in the near term. If the price break and closes above 32,400, the next upside level to watch is 32,800 then 33,100. On the downside, if the index break below the 31,600 area then the next immediate downside area is to watch 31,300 and 31,000.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-47

 

[syamfx2020]

Ride-hailing stocks were in the limelight in the last couple of weeks. Shares of the ridesharing giants Uber and Lyft rebounded in recent weeks as the demand for ride-hailing continues to recover. However, both the stocks have fallen quite considerably in the first half of this year.

Uber and Lyft are the two largest rideshare companies. The ride-sharing platforms have been battling each other for dominance in the ride-hailing space for years. Uber, the world's biggest ride-hailing operator is a technology provider that matches riders with drivers and food delivery service providers. While Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada.

Why did stock prices of the ridesharing apps see a spurt in the last two months?​

For the detailed study, we took a closer look at the last quarter earnings results of both Uber and Lyft.

Shares of Uber Technologies (NYSE: UBER) gained more than 22% in August month after the company posted upbeat second-quarter earnings. Uber reported a positive quarterly cash flow for the first time ever. The company generated a free cash flow of $382 million in the last quarter. The company also reported a record revenue of $8.1 billion in its second-quarter earnings report.



Lyft (NASDAQ: LYFT) posted better-than-expected earnings per share and record revenue in the second quarter. Lyft revenue in the second quarter jumps 30% to $990.7 million compared to the same period a year earlier. Lyft stock bounced more than 12% to above $20 supported by the release of upbeat second-quarter financial results but later the stock retreats back to below $15 after it failed to extend the rally.



During the last week, the Lyft stock has rebounded strongly and jumped almost 24%, the bullish move lifted by the rumours of a General Motors (NYSE: GM) acquisition. On the other hand, the Uber stock also extended its gains last week after Uber announced that the company will be expanding its robot delivery capabilities with a new partnership with Nuro: a technology company that creates autonomous electric vehicles.

Is Uber or Lyft the better stock to invest now?​

Year-to-date, both stocks have suffered, but Uber shares have shown a much higher blend of valuable defense than Lyft shares. However, I believe everyone looks for a bargain when it comes to investment. So, for this reason, I believe that Lyft would be a much bargain investment right now compared to Uber stock and Lyft also expects to post an adjusted EBITDA of $1 billion and $700 million of free cash flows in 2024.

Check out the complete article here - https://gulfbrokers.com/en/ride-hai...ng-weekly-gains-are-the-bulls-back-in-control

 

[syamfx2020]

For today all eyes will be turning to the August US inflation data which will give us the latest insight into whether inflation actually peaked in the short term. The consensus is that inflation will fall to 8.1% on an annual basis from July’s 8.5%. If inflation comes below 8% then the Federal Reserve may start being less aggressive with hikes, a fact that could potentially set markets for continued relief. However, most of the market participants still expect that the Fed will raise rates by 0.75% next week even though U.S inflation comes lower than expected.

EQUITIES

US stock futures extended the gains on Tuesday Morning boosted by the growing optimism that the Federal Reserve will be able to tighten monetary policy without tipping the economy into recession. While considering the recent rebound, today the Dow is expected to be extra volatile as the US will release the latest CPI data later in the day.

OIL

Oil futures holding the previous session gains ahead of the release of OPEC’s monthly outlook report, which is set to be released later in the day. The Organisation of Petroleum Exporting Countries (OPEC) and its allies last week agreed to cut monthly oil output by 100,000 barrels per day in October.

CURRENCIES

In the currency market, the EURUSD after making a fresh multi-year low of 0.9860, staged a smart recovery back to above 1.0190 as the Euro traders took advantage of the weaker US dollar. The Euro also received strong upside momentum after the ECB took a significant hawkish turn last week. Meanwhile, the GBP remains the strongest currency pair of this week, the recent bullish sentiment supported by stronger-than-expected UK macroeconomic data. UK economy expanded at a slightly faster pace than initially thought in July. The GDP grew 0.2% in July, following a 0.6% drop in June.

GOLD

The safe-haven metal hits the fresh monthly high of $1735 on Monday evening amid hopes that inflation may have peaked and will eventually convince Fed officials to slow the pace of tightening in the second half of the year. As of this writing, the metal trades above $1725.

Economic Outlook

On the data front, the UK announced the latest employment data released by the Office for National Statistics today. The data showed the unemployment rate fell to 3.6%, below expectations of 3.8%, to the lowest level since May to July 1974.

Moving ahead today, the important events to watch:

US – OPEC monthly report: GMT – 15.00

US – CPI: GMT – 12.30

Coronavirus update:

Worldwide, more than 608 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically the current price action signals suggest that a short-term bullish trend remains intact. If the bullish momentum continues, then the next upside level is to watch at 1.0200 and 1.0230. On the downside, any meaningful pullback now seems to find some support near the 1.0130 zones, below which the slide could further get extended towards the 1.0100 and 1.0080 regions.



The important levels to watch for today: Support- 1.0100 and 1.0080 Resistance- 1.0180 and 1.0210.

GOLD: For today, $1738/40 remains the key resistance to watch. On the downside, rejection and pullback from the $1740 resistance allow for a dip towards $1720, with $1710 and $1690 forming additional downside targets.



The important levels to watch for today: Support- 1710 and 1690 Resistance- 1730 and 1740.

Quote of the day - “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” ― Peter Lynch.

Read more - https://gulfbrokers.com/en/daily-market-report-554

 

[syamfx2020]

GBPUSD hovers below the 1.15 handle after the release of UK inflation data. The latest inflation data showed that inflation slowed in August, inflation declined to 9.9% on the year from 10.1% in July, the Office for National Statistics reported on Wednesday.

The currency pair started this week's trading session on a positive note supported by better-than-expected UK macroeconomic data. The latest UK GDP and employment report surprised the investors with positive results. While we witnessed a strong bearish move on Tuesday after the US dollar regains strong upside momentum following the release of US August inflation data. Moving ahead, the main attraction for GBP this week is the UK retail sales data which is set to be released on Friday morning.

Technically, the overall momentum remains bearish after the previous session's strong bearish move. In the short-term, the immediate resistance is located for the index around 1.1610, a break above this level will confirm a possible move to 1.1700 and 1.1740. On the downside, if the bearish momentum continues bears will probably try to achieve the previously tested support at 1.1440/00.

For the long-term, a fresh demand for GBP can be anticipated once the pair rises above 1.1740/50 resistance. In this case, it may offer further buying opportunities until 1.1880 and 1.1910.

For detailed analysis, check out the link - https://gulfbrokers.com/en/gbpusd-back-to-below-115-time-for-a-bounce