Daily Market Report - Friday, Feb 3, 2023


US Federal Reserve, European Central Bank and Bank of England signaled that they would continue to raise them at their next meeting. Today, investors and traders will pay close attention to the US January Nonfarm Payrolls report. Nonfarm payrolls measure the number of US workers excluding farm workers and some government workers, as well as private household employees.

The Labor Department's nonfarm payrolls report is expected to show growth, with economists forecasting a headline print of 185,000 new jobs, compared with 223,000 in December. From an unemployment perspective, the jobless Rate is expected to inch higher to 3.6%. A strong employment number might cause Fed officials to consider raising further its key interest rates in a move to curb inflation.


Wall Street come under pressure following the release of disappointing earnings results from the big tech giants Apple, Amazon and Alphabet. On Friday morning, US futures were in a cautious mood on Friday ahead of the US employment report, It’s going to be a volatile journey today especially the New York session.


Crude oil prices settled lower on Thursday due to mounting fears of a global economic slowdown and Fed Chair Powell reiterated the need for restrictive monetary policy for some time to bring inflation down. One of the other reasons behind the bearish sentiment after weekly U.S. government inventory data showed the latest crude stock draw this week.


In the currency market, the dollar index, which tracks the greenback against a basket of six major rivals regained upside momentum as Investors took that as a sign the U.S. central bank is on track to resume hiking interest rates next month. While the euro and GBP recovered from the early session lows supported by hawkish comments from ECB and BOE policymakers.


The precious metal remains under pressure following the previous session's sell-off. As of this writing, the metal hovers near the $1910 support area. Moving ahead, global cues such as the FED's stance, trends in dollar strength and the US employment report are expected to drive investors' sentiments in the remaining weeks of this month.

Economic Outlook

On the data front, the European Central Bank and Bank of England raised key rates by 50 bps in February monetary policy meeting, as expected. ECB President Christine Lagarde refrained from committing to additional rate increases after March and noted that inflation risks are now more balanced. BoE Governor Andrew Bailey noted that they will re-evaluate the policy if the economy evolves in line with their central forecasts.

Moving ahead today, the important events to watch:

US – Employment report: GMT – 13.30

US – ISM services PMI: GMT – 15:00

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.76 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

For today, the immediate support for the Euro stands near the level of 1.0860 then 1.0830. On the flip side, the first resistance is at 1.0930, any break above this level will open at 1.0960/70 minimum.

The important levels to watch for today: Support- 1.0860 and 1.0830 Resistance- 1.0930 and 1.0970.

GOLD: For today, the key support remains for the metal below 1900, a break below this level will confirm a possible move to 1892 then 1880. On the upper side, the key resistance is located around 1918/20, a break above this level will confirm a possible move to 1932 and 1938 minimum.

The important levels to watch for today: Support- 1900 and 1892 Resistance- 1918 and 1932.

Quote of the day - “Short-term trading is very time-consuming. That is why even “successful” short-term traders can easily have negative real ROI.” - Robert Rolih.
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