Daily Market Report - Friday, Dec 09, 2022


US dollars remain under pressure while US stock futures were in the green ahead of key PPI data for November from the US — the world's largest economy — that may offer more clarity on whether inflationary pressures eased further in November. The Producer Price Index, which measures wholesale prices before goods and services reach consumers, October's PPI report will be published at 1330 GMT. During the Asian session on Friday, China released the latest PPI numbers, the data showed China’s producer price index fell 1.3% in November.

The outcome of the PPI is going to be really important for the Fed because strong PPI data likely put further pressure on the Federal Reserve to raise interest rates more aggressively in order to battle inflationary pressures.


Asian shares traded higher on higher following the release of softer-than-expected Chinese inflation data. While the European and UK shares traded flat on Friday as investors and market participants awaited key monetary decisions from both the Bank of England and the European central bank next week.


Crude oil futures trade near the weekly lows on Friday Morning. The strong bearish sentiment is driven by fears of an economic slowdown, with both WTI and Brent contracts dropping almost 10 percent this week as expectations for a recession in the United States.


In the currency market, the EURUSD surged to a fresh weekly high of 1.0585 on Friday supported by robust eurozone economic data and the weak US dollar. However, considering the recent rebound in the British pound, the US dollar movement will continue to play a vital role in this currency pair's future direction. Meanwhile, the kiwi and the Aussie also eked out strong gains in early Asia trade against a softer dollar.


The precious metal holding the previous session gains and remained in favour as a safe haven throughout the last few sessions. Moving ahead to the North American session, gold traders should closely monitor the release of the US producer price index data.

Economic Outlook

On the data front, China reports inflation data in line with expectations. China's consumer price index (CPI), a main gauge of inflation, rose 1.6 percent year on year in November, easing from October’s reading of 2.1%.

Moving ahead today, the important events to watch:

US – PPI: GMT – 13.30

US – Michigan consumer sentiment: GMT – 15.00

Coronavirus update:

Worldwide, more than 645 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98.9 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

For Euro, the resistance for the pair remains above 1.0610, and any break over targets 1.0640/50. On the other side, the immediate support is near 1.0540 and any break will drag the euro to 1.0500 and 1.0470 levels.

The important levels to watch for today: Support- 1.0540 and 1.0500 Resistance- 1.0610 and 1.0640.

GOLD: Gold price trades steady above $1790. If the bullish momentum continues the next upside levels to watch are $1798 and $1804. On the downside, any meaningful pullback now seems to find some support near the $1780 zones, below which the slide could further get extended towards the $1772/68 region.

The important levels to watch for today: Support- 1780 and 1772 Resistance- 1798 and 1804.

Quote of the day - “The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behaviour.” – Brett Steenbarger.

Read more - https://gulfbrokers.com/en/daily-market-report-587