Market Reports by GulfBrokers - 2023

[syamfx2020]

The American software company Palantir Technologies (NYSE: PLTR) reported an upside surprise to their Q4 results after the bell last night. In response, the stock jumped almost 20% in the extended trading session on Monday after the firm projects profitability in 2023 boost for investors and beat earnings and revenue estimates for its fourth-quarter results.

• Earnings per share: $0.04 vs. $0.03 expected
• Revenue: $509 million vs. $505 million expected

“Our commitment to and relentless focus on the long term at times has required patience, we beat expectations for revenue growth this quarter and expect to have a strong finish to the year, even in the face of the continued strength of the U.S. dollar" – Palantir CEO Alex Karp said.

Palantir's revenue increased by 18%, to $509 million, this beat analysts’ expectations of $505 million. The data analytics company's commercial revenue increased by 11% year-on-year and government revenue rose by 23%. The company’s adjusted operating margin was 22% in the fourth quarter, higher than analyst estimates of 15.75%. Looking forward to the whole year, the software firm expects 2023 to be its first profitable year as the maker of data analytics software benefits from cost cuts and the artificial intelligence boom.

$PLTR technical outlook​

The Palantir stock closed at $7.60 on Monday's regular trading but the stock increased as high as $9.30 in after-hours trading after the earnings announcement. However, the stock is still down nearly 40% over the past 12 months. In the long term, watch for monthly closing above $11.60 or below the $7 area, which will give a larger confirmation of direction in the long term.

Read more - https://gulfbrokers.com/en/palantir-stock-soars-20-after-surprise-q4-earnings-beat

 

[syamfx2020]

The GBPUSD reversed back to below 1.2100 on Tuesday following the release of the latest UK inflation report as traders and investors continued to rein in their expectations for Bank of England (BoE) interest rate rises. The UK CPI data showed a further slowdown in January, the signs of cooling UK inflation raised bets on smaller rate hikes by the BOE. The annual inflation rate eased to 10.1% in January from 10.5% in December.

Technically the overall momentum remains bearish. As of this writing, the currency pair hit a fresh session low of 1.2070. The next nearest support level is located at 1.2020/1.2000. In case it breaks below 1.2000, it will head towards the next support level which is located at 1.1950 then 1.1900. However, a fresh demand for the pair can be anticipated once the pair rises above 1.2200.

EQUITIES

Stock markets across Europe opened slightly lower after Asian shares end nearly flat. One key factor driving risk aversion today is the latest US inflation data. While US stock slightly recovered from the previous session loss ahead of January US Retail Sales data, the event is likely to cause significant movement.

On the earnings front, Roblox, Shopify and Cisco are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices fall on Wednesday morning after the latest API data showed that U.S. crude stockpiles rose more than expected and the attention now turns to the EIA weekly crude inventory report, which is set to be released later today. The API data showed the US crude inventories increased by 10.5 million barrels last week, much higher than market forecasts for a 321,000-barrel increase.

CURRENCIES

In the currency market, the US dollar is enjoying safe haven flows today amid the gloomy market mood. Moving ahead to the North American session, the USD traders will now be focused on the release of the US Retail Sales and Industrial Production figures. Meanwhile, EURUSD reversed back to near the 1.0700 area ahead of European Central Bank President Christine Lagarde's speech.

GOLD

Precious metals plunged to a fresh month low of $1832 on Wednesday after the hotter-than-expected US inflation report fueled concern the Federal Reserve might think more interest rate hikes are needed. The better-than-expected CPI data means the Federal Reserve is likely to increase another 25-basis points interest rate at the next meeting to control inflation.

Economic Outlook

On the data front, the Consumer Price Index (CPI) in the United States increased by 6.4%, which was more than expected but slower than the previous reading of 6.5%. And on a monthly basis, consumer prices increased by 0.5% from December to January.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – Crude inventories: GMT – 15:30

Coronavirus update:

Worldwide, more than 677 million people have been confirmed infected and more than 6.78 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair remains under pressure a clear breakdown of the support at 1.0700 could open space for further declines while only recovery to 1.0800 would reverse the strong negative trend.



The important levels to watch for today: Support- 1.0690 and 1.0650 Resistance- 1.0750 and 1.0780.

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 1822/10 if the bearish momentum continues. On the flip side, the first resistance is located around 1844, a break above this level will confirm a possible move to 1850 and 1855.



The important levels to watch for today: Support- 1830 and 1822 Resistance- 1845 and 1854.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.
Read more - https://gulfbrokers.com/en/daily-market-report-617

 

[syamfx2020]

Wall Street and key US indices ends on a positive note on Wednesday as Investor sentiment got a boost from Commerce Department data showing that retail sales jumped 3.0% in January, the biggest increase since March of 2021 and compared to the market forecasts a monthly rise of just 1.8% in January. The report also showed vehicle sales climbed 5.9% in January spending at restaurants soared 7.2%. Meanwhile, sales at gasoline stations were flat. Excluding autos, sales increased by 2.3% and excluding gas and autos by 2.6%.

EQUITIES

European shares opened on a positive note Thursday after U.S. stocks ended the previous session higher. The US stock futures extend the gains on Thursday, the recent momentum supported by robust economic and encouraging Q4 earnings results from Roblox, Roku and Cisco Systems.

On the earnings front, DoorDash, DraftKings and Applied materials are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices ended slightly higher on Wednesday despite a strong dollar and a large US crude inventory build. The latest EIA inventory data showed US crude inventories jumped by 16.3 million barrels last week, far exceeding expectations of a 1.2 million barrel build. While as of this writing, the oil futures reversed from early highs and traded near the daily lows.

CURRENCIES

In the currency market, the EURUSD reversed from the previous session's losses and rebounded back to above 1.0710 Thursday Morning. However, the overall momentum is expected to remain under pressure for this whole month. While ECB President Christine Lagarde said on Wednesday, the ECB plans to raise interest rates by a half percentage point, even as price inflation also shows signs of easing in the eurozone.

GOLD

Gold price struggling to regain upside momentum due to pressure from the strong dollar and expectations for more interest rate hikes by major central banks. Interest rate futures markets are now expecting the Fed's target rate to peak above 5.2% in July. Moving ahead to the North American session, gold traders and investors should closely monitor the release of US PPI, jobless claims and housing numbers.

Economic Outlook

On the data front, the Australian Bureau of Statistics released the latest Australia employment report on Thursday early morning. The data showed the net employment fell 11,500 in January from December, compared to the market forecasts of a 20,000 rise in January. The jobless rate climbed to 3.7 percent in January, and above market estimates of 3.5%.

Moving ahead today, the important events to watch:

US – PPI: GMT – 13.30

US – Building permits: GMT – 13:30

US – Philly Fed manufacturing index: GMT – 13:30

Coronavirus update:

Worldwide, more than 677 million people have been confirmed infected and more than 6.78 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.0650. In case it breaks below this level, it will head towards the next support level which is located near 1.0610/00. On the upper side, 1.0760 will act as an immediate and strong hurdle while 1.0800 will be a critical resistance zone because above this, bulls are likely to dominate.

The important levels to watch for today: Support- 1.0650 and 1.0610 Resistance- 1.0760 and 1.0800.

GOLD: The precious metal can regain upside momentum again if it rebounds back to above the $1850 level, any break and closes above this level the next levels to watch are $1865 and $1872. Nevertheless, if it continues to fall, the slump will quickly extend toward the $1826 and $1818 marks.



The important levels to watch for today: Support- 1826 and 1818 Resistance- 1845 and 1850.

Quote of the day - “People don’t like the idea of thinking long term. Many are desperately seeking short term answers because they have money problems to be solved today.” Robert Kiyosaki.
Read more - https://gulfbrokers.com/en/daily-market-report-618

 

[syamfx2020]

The tech pioneer Google announced their Artificial Intelligence (AI) chatbot Bard against the OpenAI's ChatGPT, a startup which Microsoft Corp has funded with nearly $10 billion, introduced in November last year. The next few weeks should be an interesting spectacle as the competition between AI chatbots is heating up.

Google’s patent Alphabet (NASDAQ: GOOGL) shares dropped almost 10% last week and lost $100 billion of their value on Thursday, February 10 after Google’s Bard answered a question incorrectly in a promotional video. Google is investigating Bard’s “groundedness,” or whether the AI’s responses read as human. Alphabet CEO Sundar Pichai asked employees to spend two to four hours of their time on Bard to improve its tech and make it a tough competition to Open AI’s ChatGPT.

Bard is a Google-owned experimental AI language model, and it uses its lightweight model version of LaMDA (Language Model for Dialogue Applications), explaining that "this much smaller model requires significantly less computing power, enabling us to scale to more users, allowing for more feedback". According to Google: “Bard seeks to combine the breadth of the world’s knowledge with the power, intelligence, and creativity of our large language models.

Meantime, Microsoft plans to integrate ChatGPT into its Bing search engine as well as other products in its office suite. As per the latest reports indicate that Microsoft is preparing to launch the new generation of its search engine in preview on Android and iOS. Currently, select users from specific regions can test Bing with ChatGPT, but only on desktops. OpenAI, the startup behind ChatGPT said it is developing an upgrade to its viral chatbot that users can customize.

Microsoft (NASDAQ: MSFT) shares traded with positive momentum throughout the last 4 weeks. The stock traded with a bid tone since the company released the last quarter earnings results with some weakness seen only this week after many Bing users have taken to Twitter and Reddit in recent days to share some of the “unhinged” messages after the system started to send odd messages to users. Microsoft has now acknowledged and talked about working on, most of these issues.

Check out the original article here - https://gulfbrokers.com/en/googles-bard-vs-microsofts-chatgpt-the-battle-is-on

 

[syamfx2020]

Global markets ended last week on a mixed note 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. It will be a holiday-shortened week in the US, with markets closed on Monday for a public holiday. However, this week is expected to be a busy one, with the main focus on the RBNZ decision, US GDP and FOMC minutes as well as the earnings results from big US retail firms.



Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will release February FOMC meeting minutes on Wednesday, the minutes may provide some insight into what we can expect from the Fed over the coming months. Last week, Fed officials hinted at more policy tightening till they see a decisive sign of inflation falling going ahead.



On the earnings front, the companies scheduled to release their last quarter financial results this week will be Coinbase, Nvidia, Walmart, Etsy, Moderna, Alibaba and Baidu.



GOLD

The precious metal rebounded back to above $1840 on Friday but the overall momentum remains under pressure after the strong US inflation and retail sales numbers reinforced bets for aggressive Federal Reserve rate hikes. During the last week, the metal hit the lowest level in 6 weeks as a firmer dollar and amid prospects of aggressive monetary policy tightening dented the safe-haven appeal of the precious metal. For this week, gold investors and traders should closely monitor the comments from the FED policymakers and the last FOMC meeting minutes for clues as to their outlook for interest rates.

Technically the overall trend looks bearish after the heavy selling pressure. For this week, $1,818 is the immediate support level, followed by $1,810. If the pair breaks below the $1,810, the slump will quickly extend toward the $1800 and $1795 marks. On the upper side, $1850 will act as an immediate and strong hurdle while $1855 will be a critical resistance zone.

DOLLAR INDEX

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remained volatile and traded with a bid tone for the entire last week, with some weakness seen only on Friday. This week dollar traders across the globe waiting for the last FED meeting minutes to get a clear picture of the greenback's long term direction.

The currency pair retreated back to below 104 on Friday. On the downside, 103.40 will act as an initial cushion, any break below this level will open doors to 103. On the flip side, a move above 104.50 again will push the pair into a new trading zone, which may offer further buying opportunities until the 105 and 105.40 zones.

EURUSD

It has been a rough month for the euro due to a stronger dollar and FED's hawkish stance. After tumbling below to 1.0700 psychological level again last week, it feels like bears have won the battle in February. The currency pair could continue to struggle this week as well as the strengthening US dollar continued to sap demand for euro. This week, the movement of the US dollar and Eurozone inflation data on Thursday is likely to significantly affect the currency pair.



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 1.0600 and 1.0570 if the bearish momentum continues. On the flip side, the first immediate resistance is near 1.0750 followed by 1.0780.



DOW JONES

Wall Street and Dow Jones had a messy week despite some good US economic and earnings news. Dow erased the weekly gains as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control after the release of a stronger-than-expected US CPI report. For Dow this week, important economic news to watch includes US FED minutes on Wednesday, US GDP report and weekly unemployment claims on Thursday and personal income and spending on Friday.



This week, the Dow needs to stay above 34,100 to have a chance to develop upside momentum in the near term. On the downside, the first key support level is located at 33,500. In case it breaks below this level, it will head towards the next support level which is located at nearly 33,250 then 32,900.


Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-68

 

[syamfx2020]

Eurozone and Germany reported mixed PMI numbers during the European session with Eurozone Manufacturing PMI contracting to 48.5 in February from 48.8 in January and German manufacturing PMI falling to 46.5 in February of 2023 from 47.3 in January. Meanwhile, services PMI from both regions accelerate to an 8-Month High. On the other hand, the UK reported stronger-than-expected manufacturing and services PMI data. Moving ahead to the North American session, the US will release the latest manufacturing PMI data, to be published at 14:45 GMT.

EQUITIES

European and UK shares opened lower while US stock futures extend the decline as investors across the globe remain concerned about the impact of aggressive monetary policy tightening on economic growth. During the previous session, the US markets were closed in connection with the celebration of President's Day.

OIL

Oil bears gained firmer control as crude prices struggled to regain strong upside momentum. The sentiment in the oil market has been fairly volatile as prices have been stuck in a range for the last couple of weeks. One of the key factors the oil traders should monitor this week is the weekly EIA and API crude inventory reports and FED minutes.

CURRENCIES

In the currency market, the New Zealand dollar remains under pressure ahead of the Reserve Bank of New Zealand’s policy decision, which is set to be announced on Wednesday early Morning. The central bank expected to slow down the interest rate hike after delivering a record 75 basis point increase in November. Meanwhile, the dollar index tracks the U.S. currency against six major peers back to above the 104 level. Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Wednesday's FOMC minutes.

GOLD

The precious metal slipped again on Tuesday as the bulls still struggling to find upside momentum after the hawkish comments from the FED policymakers last week. The overall momentum is expected to be under pressure in the coming days due to the pressure from the strong dollar and expectations for more interest rate hikes by major central banks.

Economic Outlook

On the data front, the Reserve Bank of Australia released the last meeting minutes Tuesday Morning. The minutes showed the Board had also considered raising interest rates by 50 basis points, as it struggled to bring down inflation from overheated levels. “Members agreed that further increases in interest rates are likely to be needed over the months ahead to ensure that inflation returns to target and that the current period of high inflation is only temporary.” – the minutes said.

Moving ahead today, the important events to watch:

Canada – CPI: GMT – 13.30

Canada – Retail Sales: GMT – 13:30

US – Manufacturing PMI: GMT – 14:45

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the key support level is located at 1.0610. In case the pair breaks below this level, it will head towards the next support level which is located at near 1.0580/70. On the upside, the key resistance is located for the pair above 1.0700.



The important levels to watch for today: Support- 1.0610 and 1.0580 Resistance- 1.0670 and 1.0700.

GOLD: Technically the overall momentum remains bearish. On the downside, $1818 is the crucial support area to watch. If the metal breaks below this area, the slump will quickly extend toward the $1810/00 mark. On the flip side, $1843/48 will act as key resistance, and a break above this level could open up a buying trend until $1855/60.



The important levels to watch for today: Support- 1826 and 1818 Resistance- 1840 and 1848.

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-619

 

[syamfx2020]

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies remains steady ahead of the FED minutes, which is set to be released at 19.00 GMT. The outcome of the minutes from the Fed's latest policy meeting should be a big piece for the next trend for the king dollar. The overall momentum remained bullish for the last couple of weeks on speculation that the Federal Reserve would continue to raise interest rates. The most awaited FED minutes will also tend to lead to significant moves for other currency currencies, commodities, and Indices.

The Dollar index (DXY) hovers above the 104 area. If the bullish momentum continues the next key upside level to watch is 104.60, any break over targets 105 and 105.30. On the downside, any meaningful pullback now seems to find some support near the 103.50/40 zones.

EQUITIES

Wall Street posted its worst performance of the year on Tuesday as markets bet on more interest-rate hikes from the Fed. US stock futures extend the decline Wednesday morning ahead of the release of the Federal Reserve’s latest minutes. On the other hand, Investors should also close pay attention today to corporate earnings with some of the biggest companies reporting their earnings. Nvidia, Etsy, Baidu and Wix.com are amongst those reporting the last quarter's financial results today.

OIL

Crude oil bears are firmly in control. On the macro side, US Dollar strength and hawkish signals from US Federal Reserve officials were the main bearish factors impacting crude markets this week. Moving ahead, oil traders should closely monitor the release of the EIA inventory report and the FED minutes.

CURRENCIES

In the currency market, the British pound reversed from the previous session's gains. The currency pair hit a fresh weekly high of 1.2147 on Tuesday, the upside sentiment lifted after the release of upbeat UK PMI numbers. Meanwhile, Euro slipped to a fresh session low of 1.0639 Wednesday Morning following the release of the weaker-than-expected IFO business climate report.

GOLD

The precious metal retreats back to below $1835 during the European session as investors grew more cautious about placing aggressive bids ahead of FOMC minutes to be announced today. The strong bearish sentiment was also fueled by the resurgence in the US dollar. The dollar rally comes after renewed concerns about aggressive interest rate hikes.

Economic Outlook

On the data front, New Zealand’s central bank raised its benchmark interest rate by half a point to 4.75%. The Monetary Policy Committee agreed that the OCR still needs to increase, as indicated in the November Statement, to ensure inflation returns to within its target range over the medium term.

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair can regain upside momentum again if it rebounds back to above the 1.0700 level, any break and closes above this level the next levels to watch are 1.0740/70. Nevertheless, if it continues to fall, the slump will quickly extend toward the 1.0610 and 1.0570 marks.



The important levels to watch for today: Support- 1.0600 and 1.0570 Resistance- 1.0700 and 1.0740.

GOLD: For gold, the first nearest support level is located at 1830. In case it breaks below this level, it will head towards the next support level which is located near 1820/18 then 1810. On the upper side, 1855 will act as an immediate and strong hurdle while 1860 will be a critical resistance zone because, above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1830 and 1818 Resistance- 1848 and 1855.

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-620

 

[syamfx2020]

Shares of Premier League club Manchester United (NYSE: MANU) now correcting after surging more than 30% since the start of 2023. The stock dropped almost 13% on Tuesday after the Glazer family have been offered the financial backing to remain as United's owners by American hedge fund Elliott Management.

The Glazers family, who have held ownership of the club for over a decade, but the Manchester United fans have been visibly upset at the owners and they want the Glazers to sell the club. The united stock rose sharply in the last couple of months and has gained 90% in the past 6 months after the Glazers announced a potential sale.

Earlier this month, Jim Ratcliffe, one of Britain's richest men and owner of petrochemicals giant INEOS, and Sheikh Jassim Bin Hamad Al Thani, the chairman of the Qatar Islamic Bank, submitted their bids to buy the club. Sheikh Jassim confirmed his intention for a complete, 100% takeover of the club. The soccer club fans and supporters still hope the Glazers leave the club completely and want the Red Devils to be managed by a new entity.

$MANU short-term and long-term technical outlook​

The stock reached a fresh 52-week high on rumours of a potential takeover. $MANU hit our first target and almost touched the second short-term target of $27.70 last week, check more here - https://gulfbrokers.com/en/manchester-is-red-manu-stock-jumped-60-last-week.

Looking at the stock from a very short-term perspective, it is evident that the stock just retreats after reaching the near-key resistance area of $28. On the downside, $20.80/20 is the next immediate support area to watch, followed by $18. Further selling pressure will intensify only if the stock break below the $15 level. On the flip side, $24.40 will act as an immediate and strong hurdle while $25.30/50 will be a critical resistance zone because, above this, bulls are likely to dominate.

For the long-term, the key level remains an August 2018 high of $27.70 as a break above would increase the potential of an extension towards $30/32 first then $35 over the coming months. On the flip side, $15 remains the key support area to watch.

Check the original article with charts here - https://gulfbrokers.com/en/manchester-united-takeover-keep-an-eye-on-united-stock

 

[syamfx2020]

Shares of the leading semiconductor company NVIDIA (NASDAQ: NVDA) gained more than 8% in after-hours trading on Wednesday after the company reported earnings and revenue for the last quarter that easily topped analysts' forecasts. The chipmaker also revealed plans of launching new cloud-services that would increase the availability of artificial intelligence (AI) tools, including chatbots, to a wide range of businesses.

Earnings per share: $0.88 vs. $0.81 expected

Revenue: $6.05 billion vs. $6.01 billion expected

“AI is at an inflection point, gearing up for broad adoption across industries,” Nvidia CEO Jensen Huang said. “We are ready to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 network structure, is in full production” – he added.

EQUITIES

US stock futures and global stocks remain under pressure and continue its downward rally Thursday morning session amid lingering concerns over the aggressive central bank tightening to bring inflation back under control.

On the earnings front, Moderna and Domino’s are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures extend the decline in the Asian session after the latest API data showed the US crude inventories grew substantially more than expected last week. The API data showed the US crude inventories increased by 9.9 million barrels last week, far exceeding expectations for a 1.2 barrel increase. While the last few weeks the oil prices were hemmed into a tight range as investors were caught between pressure from prospects of higher interest rates.

CURRENCIES

In the currency market, The US dollar remains in favour as a haven currency among traders around the world supported by expectations for faster Federal Reserve interest rate hikes boosted demand for the greenback. The markets predict at least two more rate hikes by the Fed in the near term after the release of hawkish FED minutes, which could keep the dollar relatively strong.

GOLD

The rise in the dollar has been a setback for gold, which trades near its lowest in more than six weeks. The Federal Reserve's hawkish remarks contributed to negative sentiment in the commodities market. Moving ahead to the North American session, the gold traders will now be focused on the latest US GDP data which is set to be released at 13.30 GMT.

Economic Outlook

On the data front, The FED released minutes from the Fed's February meeting on Wednesday. The minutes revealed that Federal Reserve members almost unanimously anticipate that it is appropriate to raise its Fed funds rate by 25 basis points at the next FOMC meeting. "All the participants agreed that it was appropriate to raise the target range of the federal funds rate by 25 basis points which will let the Fed better determine the extent of future increases" – the minutes said.

Moving ahead today, the important events to watch:

US – GDP: GMT – 13:30

US – Jobless claims: GMT – 13:30

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The currency pair remains under pressure a clear breakdown of the support at 1.0600 could open space for further declines while only a recovery to 1.0700 would reverse the short-term negative trend.



The important levels to watch for today: Support- 1.0580 and 1.0560 Resistance- 1.0640 and 1.0670.

GOLD: For gold today, the first nearest support level is located at $1820/18. In case it breaks below this level, it will head towards the next support level which is located near $1814/10. On the flip side, the resistance for the metal remains above $1848, any break over targets $1855/60.



The important levels to watch for today: Support- 1820 and 1814 Resistance- 1840 and 1848.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.
Read more - https://gulfbrokers.com/en/daily-market-report-621

 

[syamfx2020]

Gold price is pulling back modestly Friday Morning after hitting the crucial support area of $1818/17 once again on Thursday. The precious metal has been under intense selling pressure throughout this month. The bearish sentiment is driven by the release of hotter-than-expected US inflation data and hawkish comments from Federal Reserve policymakers. The recent FED minutes also showed policymakers agreed rates would need to move higher in the near term.

Moving ahead, today the gold traders and investors should closely monitor the release of US personal income and spending data because the Federal Reserve views the PCE index as the best barometer of inflation trends.

EQUITIES

The major indices of the US stock markets showed a lot of volatility and closed with significant losses on Thursday after the comments from the Federal Reserve Bank of New York President John Williams. While as we are heading to the final days of this month global cues such as the FED's hawkish stance, trends in dollar strength and US PCE inflation data are expected to drive investors' sentiments in the remaining days of this week.

OIL

Crude oil prices ended slightly higher following the last few days’ strong bearish move despite the release of weak oil inventory data from API and EIA. On Thursday, the EIA inventory data showed the US crude inventories rose by 7.65 million barrels last week to the highest level since May 2021.

CURRENCIES

In the currency market, the Euro and the Yen were the main losers among major currencies in early European trade on Friday, extending losses as the dollar extended the gains in the hope that the Federal Reserve might consider a 25-bps rate hike in the March meeting. Commodity-linked currencies such as the Australian and Canadian dollars hit a fresh weekly low against the US dollar on Thursday.

GOLD

Gold price hovers near the monthly lows and remains volatile as the markets are unsettled by swings in volatility caused by the latest US inflation data and Federal Reserve meeting minutes. During the early Asian session, the metal slightly recovered back to above $1825 but as of this writing, the metal reversed back to near $1820 after the buyers failed to hold upside momentum.

Economic Outlook

On the data front, the US economy grew slightly less than reported in the final three months last year, the Commerce Department said Thursday. The GDP data showed the US economy expanded an annualized 2.7% on quarter in Q4 2022, slightly below 2.9% in the advance estimate.

Moving ahead today, the important events to watch:

US – Personal income and spending: GMT – 13:30

US – Michigan consumer sentiment: GMT – 15:00

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair trades below the key support area of 1.0600. If the bearish momentum continues the next downside levels to watch are 1.0560 and 1.0530. On the flip side, the immediate resistance is at 1.0630 and then 1.0670.



The important levels to watch for today: Support- 1.0560 and 1.0530 Resistance- 1.0630 and 1.0670.

GOLD: For gold today, the key support for today is nearly $1816. In case it breaks below this level, it will head towards the next support level which is located near $1810/00. On the flip side, the resistance for the metal remains above $1830, and any break-over targets $1835/40.



The important levels to watch for today: Support- 1816 and 1810 Resistance- 1830 and 1835.

Quote of the day - “Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.” - Warren Buffett.
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