Daily Market Report - Friday, Jan 06, 2023


Global markets made slim gains on Friday as investors await U.S. employment data that might influence the Federal Reserve’s decision on whether to act more aggressively. The NFP data is an indicator of American employment, NFP measures the change in the number of people employed during the previous month.

The US Bureau of Labor Statistics (BLS) will release the December jobs report today at 13.30 GMT. The expectations are for 200k jobs to have been added to the US economy in December and the unemployment rate is expected to be unchanged at 3.7%.


US futures are in a cautious mood on Friday ahead of the US employment report as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control. On Thursday, Wall Street ended lower despite the release of better-than-expected US economic data. The UK and Asian shares extend the gains on Friday supported by robust macroeconomic data.


Crude oil prices traded with strong bearish sentiment throughout this week due to rising tensions about the recent coronavirus pandemic in China and its impact on the global economy and oil demand. Meanwhile, the latest EIA crude inventory data showed the US crude stocks increased by 1.694 million barrels in the week ended December 30th, more than market expectations of a 1.154 million rise.


In the currency market, the Euro trades near the session lows against the US dollar following the release of mixed economic data from Germany. Factory orders in Germany dropped 5.3% in November while retail sales in Germany jumped 1.1% in November of 2022, following a 2.8% drop in October. Meanwhile, the US dollar remains steady as Investors shift their focus to the safe-haven currency as global market sentiment remains cautious.


The safe-haven metal remains under pressure. The data to come later today on US payroll numbers could prove key to determining the next moves. The expected trading range for gold today is between 1820 support and 1865 resistance. At the time of writing, the precious metal trades below $1835.

Economic Outlook

On the data front, U.S. labor market data showed weekly initial jobless claims fell to 204K from 225K expected and 223K previously. The ADP data showed private-sector payrolls rose by 235,000, exceeding the market consensus of 150,000.

Moving ahead today, the important events to watch:

US – Non-Farm payrolls: GMT – 13.30

US – ISM services PMI: GMT – 15.00

Coronavirus update:

Worldwide, more than 665 million people have been confirmed infected and more than 6.69 million have died. The United States has confirmed over 102 million cases and has had more than 1.11 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

The currency pair remains under pressure a clear breakdown of the support at 1.0500 could open space for further declines while only recovery to 1.0560 would reverse the short-term negative trend.

The important levels to watch for today: Support- 1.0480 and 1.0450 Resistance- 1.0560 and 1.0600.

GOLD: The gold price slightly rebounded from the early session lows; the key support remains below the previous session low of $1824. On the flip side, the immediate resistance is located above $1842, a break above this level will confirm a possible move to $1848/50.

The important levels to watch for today: Support- 1830 and 1820 Resistance- 1842 and 1850.

Quote of the day - A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort - Richard Driehaus.

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