Daily Market Report - Friday, Jan 07, 2022

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The US dollar index, which tracks the U.S. currency against six major peers, is trading slightly lower as the NFP job numbers are awaited later today. According to the market expectation, Nonfarm Payroll (NFP) is expected to rise from 210K to 400K while the Unemployment Rate may have eased to 4.1% from 4.2% prior.

EQUITIES

US stock futures struggling to find the upside momentum ahead of US jobs reports after the hawkish Federal Open Market Committee (FOMC) Meeting Minutes. The bearish sentiment also driven by the global number of new coronavirus cases increased sharply by 71 per cent as compared to the previous week.

OIL

Crude oil futures are on track to end the week on a positive note. Both WTI and Brent oil futures reached a fresh weekly high on Friday boosted by the strong crude oil inventory data and the recent OPEC meeting outcome.

CURRENCIES

In the currency market, the risk-linked currencies like the Australian and New Zealand dollar remained under pressure against the US dollar. On Thursday, the greenback ignored the weaker-than-expected US jobless claims and ISM services PMI data.

GOLD

The safe-haven metal trades below $1790 on Friday weighed down by the strong US dollar. The data to come later today on US payroll numbers could prove key to determining the next moves.

Economic Outlook

On the data front, U.S. labor market data showed weekly initial jobless claims rose by 7,000 to a seasonally adjusted 207,000, slightly above the 197,000 forecasts. Meanwhile, the ISM Services PMI fell to 62 in December from a record high of 69.1 in November, well below market forecasts of 66.9.

Moving ahead today, the important events to watch:

US – Nonfarm payrolls: GMT – 13.30

Canada – Employment report: GMT – 13.30

Coronavirus update:

Worldwide, more than 295 million people have been confirmed infected and more than 5.44 million have died. The United States has confirmed over 57 million cases and has had more than 831,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD:
In the short term, if the pair breaks above 1.1345 which would open doors towards the next resistance area of 1.1385 and above that 1.1420 is next. On the downside, the immediate support is near 1.1270, and a further breakout below this area could lead the pair towards the next support level of 1.1240/20.

eurusd


The important levels to watch for today: Support- 1.1270 and 1.1220 Resistance- 1.1345 and 1.1400.

GOLD: Technically the overall momentum remains bearish. For today, the key support area is around $1765. On the upper side, the short-term resistance at $1800 any break above this level will open $1806 then $1810/14.

gold neww


The important levels to watch for today: Support- 1782 and 1770 Resistance- 1800 and 1806.

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-429
 
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